A survey found that 6 out of 10 financial and economic experts at home and abroad believe that the financial system will face a crisis within the next year.
When the Bank of Korea asked 72 executives and employees of domestic and foreign financial institutions and major economists, 58.3 percent answered that a shock that would lead to a crisis in the financial system is highly likely to occur within a year.
Compared to the results of the same survey last May, the rate of predicting a short-term financial crisis jumped 31.4 percentage points in six months.
High levels of household debt and repayment burden, and risk of corporate default were cited as major risk factors.
Confidence in the stability of the financial system, on the other hand, has declined markedly.
Only 36.1 percent of those surveyed rated the reliability of the domestic financial system's stability as high, a decrease of 17.1 percentage points from the May survey.
Non-banking sectors, such as savings banks, securities companies, and capital companies, were pointed out as areas with high potential for financial vulnerabilities to be revealed.
It is interpreted as a result of reflecting the high proportion of vulnerable borrowers and the risk of default on real estate project financing loans.