South Korean’s aged between 40 and 64 has been found to be under debt last year. The same has been attributed to more people taking out loans to buy homes amid skyrocketing housing prices.
According to the data by Statistics Korea, around 56.5 percent of people in the age group borrowed money from banks or other financial institutes last year, up 0.2 percentage point from the previous year.
Summary of the debt so recorded –
• Last year, the amount of their median debt reached 52 million won (US$43,600), up 7.1 percent from a year earlier.
• In 2020, the median debt rose to 98.4 million won for those who possess homes, this is more than three times the 27.8 million won for those who do not own homes.
• The above meant that their indebtedness increased as they took out loans to buy homes.
• As of Nov. 1, 2020, the middle-aged people reached 20.09 million, accounting for 40.1 percent of the country’s 52 million population.
• Last year, they earned a yearly average of 36.92 million won, up 3.8 percent from the previous year.
• As of Nov. 1, 2020, 8.67 million middle-aged people, or 43.1 percent, owned houses, up from 42.6 percent a year earlier.
• In the reporting year, the amount of households that consist of people aged 40-64 as wage earners reached 13.24 million, thus accounting for 63.2 percent of all households.
• Among the 11.3 million households, 57.4 percent lived with their children.
• While last year as of October, among the above’s children aged between 19 and older, 48.4 percent, or 2.45 million, were unemployed. And some 320,000 children aged 30 and older.
In recent years, the country’s housing prices have sharply risen as people in anticipation of higher price hikes hurried to lend money from banks to buy homes.
According to reports, the country’s household debt has been repeatedly cited as the main drag on its economy, this is because households’ high indebtedness is feared to limit domestic demand and thus crimp economic growth.
The central bank reported the country’s household credit as of end-September came to a record high of 1,844.9 trillion won, up 36.7 trillion won from three months earlier.