Lee Bok-hyun, the head of the Financial Supervisory Service, urged banks to take action to control the ongoing increase in household lending during a meeting with bank consumers and experts in Seoul. He emphasized the potential negative impact of high household debts on market volatility and economic growth, warning that failure to keep debts at a proper level could lead to increased economic burden. Lee also expressed concern about the high dependence of local banks on real estate-related loans, which could jeopardize their fiscal soundness in the event of a housing price decline. In response to the rapid growth of household loans extended by local lenders, Lee called on banks to voluntarily tighten their household loan screening and risk management efforts. He stressed that government regulations on household loans represent the minimum criteria to be followed, and urged banks to take proactive measures to strengthen their risk management practices.