SEOUL (Reuters)

A voting Bank of Korea board member, Chang Yong-sung, who dissented in its decision to cut interest rates on Oct. 11, stated that any rate reduction should be delayed to prevent further spikes in property prices, according to minutes from the bank's meeting.

The BOK voted 6-1 to lower policy interest rates to 3.25% earlier this month due to increasing uncertainties regarding the future path of output, while September's headline inflation fell below the bank's 2% target.

"Sharp (OTC:SHCAY) property price increases in wider metropolitan areas and subsequent household debt growth are very worrisome," Chang noted in the minutes published on Tuesday.

"We need more time to check home prices as well as the household debt growth trend, and as such, policy interest rates need to stay at the current 3.50%."

Most board members perceived reduced systemic risks from household debt as property prices began to stabilize from September onwards, though many highlighted the importance of monitoring global oil prices due to potential increases in energy costs from geopolitical risks in the Middle East.

Governor Rhee Chang-yong remarked that he anticipates Asia's fourth-largest economy to expand by approximately 2.2% this year, a decrease from the previously projected annual growth rate of 2.4%.