Gov't warns of possible excessive overheating in asset markets

SEOUL, Dec. 9 (Yonhap) -- South Korea's vice finance minister warned Wednesday against potential excessive overheating in stock and property markets, saying that asset prices could spike amid ample liquidity and the economic recovery.

First Vice Finance Minister Kim Yong-beom made the remarks as the country's stock prices hit a fresh record high in recent sessions and housing prices have not stabilized despite a series of the government's measures.

"We need to be wary of the possibility that market volatility could increase at any time," Kim said at a meeting over macroeconomics and finance with officials from the central bank, the financial watchdog and other institutions.

He warned that amid ample liquidity, asset prices could shoot up when economic recovery momentum at home and abroad picks up if coronavirus vaccines roll out in a full-fledged manner.

The stock market extended its record high for the fifth straight session Monday, led by foreign buying. The local currency also rose to a 30-month high per dollar this week.

Housing prices continued to rise despite the government's efforts to stabilize soaring home prices. Housing prices rose 0.6 percent on-year in November, the fastest gain since June 2018, according to the statistics office.

"The government will do its best to stabilize sentiment and curb the flow of ample liquidity into the property market," Kim said.

sooyeon@yna.co.kr
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