Bank of Korea Head Warns Prolonged Tight Money May Spur Instability
• Bank of Korea Governor cites financial risks of prolonged monetary tightening • Points to doubts about commercial real estate loans and a troubled local builder as warning signs • Says need to be prepared for possible financial instability from tight policy • Met with finance minister and regulators after builder debt restructuring caused market worries • Central bank's 2% inflation target remains valid but policy fine-tuning required