ADB to release revised 2026 Asia Economic Outlook on Wednesday
Bank of Korea to assess vulnerable borrowers, household loans after consecutive rate hikes
Details of 600 billion won public growth fund to be unveiled
The Asian Development Bank will release a revised South Korea GDP growth forecast for this year next week, while the Bank of Korea will review financial stability conditions — including the repayment burden on vulnerable borrowers and household lending trends — following consecutive benchmark interest rate hikes. The Financial Services Commission is also set to unveil details of the second public participation growth fund, which launches at the end of this month.
The ADB will publish its revised 2026 Asia Economic Outlook on Wednesday. Attention is focused on how much the bank will raise its growth forecast for South Korea this year.
The ADB projected South Korea's growth rate at 1.9 percent in April. After exports and overall growth — led by semiconductors — came in stronger than expected, the bank raised its forecast by 0.7 percentage points to 2.6 percent in a supplementary outlook in July.
With major institutions recently projecting South Korea's economy will grow at around 3 percent or higher this year, the ADB is widely expected to lift its forecast further in the revised outlook.
The Ministry of Statistics will release the 2025 Cause of Death Statistics on Tuesday. The report, compiled from death certificates filed with administrative agencies nationwide, will cover the total number of deaths last year, deaths per 100,000 people and leading causes of death.
Mortality trends for major diseases — including cancer, heart disease and pneumonia — as well as changes in the number of deaths by suicide (intentional self-harm) will also be made public. On Wednesday, the ministry will release the July 2026 Population Trends report, covering the number of births, marriages, divorces and deaths.
The Bank of Korea will publish its Financial Stability Report on Tuesday — a regular assessment of risks in the domestic financial system and the first since the June financial stability report three months ago.
The report is expected to examine how consecutive benchmark interest rate hikes have affected the debt-repayment capacity of vulnerable borrowers and the soundness of financial institutions. Rising housing prices in mid- to low-priced areas of Seoul and parts of Gyeonggi Province, and the risks stemming from growing leveraged investment in the stock market, are also among the key areas under review.
The Bank of Korea will also release the results of its September Consumer Sentiment Survey on Wednesday. The composite consumer sentiment index fell 2.3 points from the previous month in August — snapping four months of gains — as stock market corrections weighed on sentiment.
The housing price outlook index, which reflects consumers' expectations for home prices a year ahead, also fell for the first time in five months. Markets will be watching whether consumer sentiment and expectations for further housing price gains have rebounded in September.
The Financial Services Commission plans to release next week the sales schedule, eligibility conditions and other details of the second public participation growth fund, which launches Sept. 30.
Like the first fund, the second round will raise 600 billion won ($435 million) from the general public. A notable feature is a significant expansion of the allocation reserved for low-income households — set at 50 percent of total sales — to broaden participation among ordinary citizens and young people.
FSC Chairman Lee Eok-won will attend a "Physical AI Regional Hub Development Forum" on Tuesday, where Doosan Robotics and Rainbow Robotics are among the participants. Lee is expected to outline the government's commitment to policy financing support for physical AI regional hubs and observe the signing of MOUs among local governments, policy finance institutions and regional banks.
The Financial Supervisory Service will hold a meeting Tuesday with compliance officers at major securities firms to discuss strengthening investor-centered internal controls. The FSS also plans to issue consumer advisories ahead of the Chuseok holiday regarding a series of illegal fund-raising schemes that have falsely promised principal guarantees to attract investors.
If you're thinking about self-harm or suicide, dial the Suicide Prevention Hotline at 109, or call Lifeline Korea at 1393 (available 24 hours a day, seven days a week).
attom@heraldcorp.com
