Experts warn that Korea could suffer a financial crisis within a year. In a poll of 72 financial analysts and economists by the Bank of Korea on Sunday, 42 said the country could experience a financial crisis in less than a year, saying the chances are high or very high.The same survey in May, only one out of four forecast a financial crisis in Korea.Some 19 said the Korean economy could experience a crisis between one to three years.Experts pointed to growing bankruptcies as the main trigger of a potential financial crisis, while others cited soaring household debt and the increasing repayment burden as interest rates rise.
A BOK official said, "In our survey in May, experts cited external risks such as inflationary pressure due to global supply chain disruptions and the Russian war in Ukraine, but in the latest survey, internal factors were seen as a higher risk."Confidence in Korea's financial soundness also weakened. Only about one-third of the experts were confident, down from more than half in May.