The Bank of Korea expressed concern that rising household debt could become a serious threat to the economy.
Household debt hit a record 1,765 trillion won ($1.6 trillion) in the first quarter largely due to continued increases in mortgage lending and lending for stock investment, the Bank of Korea said Tuesday. The statistic includes household loans from..
Household debt hovers at dangerous levels. Outstanding household credit hit a record high of 1,765 trillion won ($1.6 trillion) in the first quarter, according to the Bank of Korea. Household debt refers to personal loans from...
Household debt hit a record 1,765 trillion won ($1.6 trillion) in the first quarter largely due to continued increases in mortgage lending and lending for stock investment, the Bank of Korea said Tuesday.
Starting July this year, the 40 percent DSR will be applied to mortgages for properties valued at 600 million won or above, down from the previous 900 million won.
The KDI says that in 2017 the debt of these companies was already 23.5 percent of GDP, the highest among the 33 member nations of the Organization of Economic Cooperation and Development (OECD), where the average that year was 12.8 percent.
Credit card balances hit a record high in 2020, with a total of 32 trillion won ($28.5 billion) of such credit extended in the country.
Money owed by households continued to grow through the end of last year as people borrowed to buy houses and invest in stocks.
Household borrowings from banks increased by 7.6 trillion won ($6.86 billion) last month, the biggest January jump ever.
Sohn Kwan-ju, a 28-year-old office worker, puts some 70 percent to 80 percent of his salary into a stock trading account every month. “I always feel anxious [about my future] as there is no longer such thing as a job for life, and the company...