Hi folks, this is Frank.
‘Household Debt’ issues from all the news over the last week, and still going on!
Surprised by all the news headlines talking about Household Debt problems and scared by them?
Guess you are overloaded with a lot of news and get even more confused about what’s really going around.
Here I am bringing up ‘An Overview of Household Debt Trends’ in Korea, which is a compact version of FSC’s Press Release on it.
Speaking as concise as possible, the household debt in Korea has been ‘improving’ and it is currently at a ‘manageable level’.
This is shown from the fact that the growth rate of household debt has slowed down since the second half of 2011.
Some of you have concerning voices regarding this year’s slight rise in the household default rate.
But, what you are undermining is that the slight rise is still lower than that in early 2000s.
What’s also relieving is that majority of household debt (69.1%) is held by high-income-range individuals, showing an additional assurance of repayment.
This is backed up with sound financial institutions which are still capable of absorbing losses.
Hope this post eases your concerns over the issue.
Want to get a full version of the overview? Follow this link and have a look at FSC’s Press Release;