December 5, 2018 / 3:12 AM / 7 months ago

South Korean experts see growing risks from slowing economy, China: BOK survey

FILE PHOTO: An apartment complex which is currently under construction is seen in Seoul, South Korea, August 30, 2016. Picture taken August 30, 2016. REUTERS/Kim Hong-Ji

SEOUL (Reuters) - South Korea’s economic slowdown and growing financial instabilities from neighboring China have replaced household debt and a property boom as the top risks for industry experts, a central bank survey released on Wednesday showed.

The semi-annual survey showed the proportion of respondents worried about slowing growth shot up to 67 percent in November from 38 percent in the same survey in May, the Bank of Korea said in a statement.

More than half of respondents were worried about the Chinese economy, up from 18 percent in May.

Respondents were less concerned about household debt and property market instability, in line with broad analyst views that the case for an additional central bank rate hike next year is declining.

Only 45 percent of respondents referenced accumulating household debt as a major risk, down from 74 percent in the previous survey. The BOK said the government’s various curbs on the property market had impacted respondents’ views.

The BOK lifted policy rates KROCRT=ECI to 1.75 percent last week, citing fast growth in consumer and corporate borrowing, which had driven a boom in metropolitan property markets.

The BOK said 86 experts from 76 local and foreign organizations took part in the survey.

Reporting by Hayoung Choi, Choonsik Yoo; Editing by Sam Holmes

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