The Financial Supervisory Service (FSS) revealed that South Koreans had taken out a total of 476.9 trillion won (US$353.8 billion) in loans over the past year. Rep. Kim Sang-hoon of the People Power Party said that 134 trillion won of that amount was taken out by individuals in their twenties and thirties.
The survey conducted by the FSS included new loans from five major banks and six major stock brokerages. The majority of the loans were for stock investments, amounting to 293 trillion won in new loans from securities firms. Mortgage and credit loans for property purchases also increased, rising by 183 trillion won.
The rise in borrowing was accompanied by an increase in overdue payments. The amount of overdue loans rose from 1.2 trillion won in the second half of last year to 1.7 trillion won in July of this year.
“The Moon Jae-in government must introduce policies, such as household rules, to address the issue of leveraged investments and the deteriorating household economy,” Kim said.
The International Monetary Fund’s Global Debt Database showed that South Korea’s household debt as a percentage of its gross domestic product was 108.1%, the highest five-year increase among 26 countries in the database.
A person walks past a bank advertisement for a mortgage loan in Seoul, in this file photo taken on Oct. 3, 2023. (Yonhap)
fairydust@yna.co.kr
(END)