A member of the Bank of Korea's(BOK) monetary policy board mentioned the rising housing prices as a major economic variable, saying Seoul City's revival of a permit system for housing transactions in the city's four affluent districts could work in favor of future monetary policy.

Meeting with local reporters on Wednesday, BOK monetary policy board member Chang Yong-sung said if the latest permit revival helps bring down household debt, it would facilitate future monetary policy decisions.

Chang said there have been concerns over the foreign exchange rate, housing prices and household debt, adding that related trends should continue to be monitored.

In response to criticism that the central bank had run late in cutting the interest rate last year, the board member said although the real economy had weakened, an early cut could have accelerated the rise in housing prices.
 
Projecting that the future rate cut would be made to the point where it does not affect price stability, if concerns over home prices and household debt escalate, the board would have no other choice but to return to considering a rate hike.