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45 pct of Household Debt Belongs to Top 20 pct of the Population

45 pct of Household Debt Belongs to Top 20 pct of the Population

SEOUL, Dec. 21 (Korea Bizwire) — New data shows that wealthy South Koreans are more indebted than ever, meaning that so called “the rich getting richer” phenomenon in household debts is becoming ever more serious. It is estimated that the top income bracket borrowed additional money to purchase real estate, but higher housing prices led [...]

Banks Encouraged to Provide Policy Loans to Desperate Borrowers

Banks Encouraged to Provide Policy Loans to Desperate Borrowers

SEOUL, Dec. 21 (Korea Bizwire) — The financial regulator said Friday it will encourage banks to provide mid-rate policy loans worth 1 trillion won (US$886 million) to desperate borrowers from next year, as part of ongoing efforts to relieve their debt burdens. About 3 million borrowers, who have no option but to borrow money from [...]

Government to Forgive 480 Billion Won of Small Business Debt

Government to Forgive 480 Billion Won of Small Business Debt

SEOUL, Jul. 23 (Korea Bizwire) — The government has decided to acquire 480 billion won of debt incurred over 10 years ago by small business owners, of which most will be written off. Meanwhile, an additional 1 trillion won will be pumped into the “Make it Happen” loan program for small business owners, which was [...]

S. Korea to Lower Maximum Legal Lending Rate to 24 pct Next Year

S. Korea to Lower Maximum Legal Lending Rate to 24 pct Next Year

SEOUL, Jul. 26 (Korea Bizwire) — South Korea will lower the maximum legal lending rate to 24 percent from next year and strengthen supervision of private lenders, in a move to help ease financial burdens for desperate borrowers, the nation’s top financial regulator said Wednesday. Choi Jong-ku, the new chairman of the Financial Services Commission [...]

Reducing Household Debt May Shrink Consumption

Reducing Household Debt May Shrink Consumption

SEOUL, April 3 (Korea Bizwire) – The Korea Institute of Finance suggested Sunday that drastically reducing household debt could shrink consumption, raising a dilemma for those crafting South Korean economic policy to combat the struggle to cope with soaring debt and waning domestic consumption.  According to researcher Park Choon-sung in his report on household debt [...]

Government Deliberates New Plans for Low-Income Households amid Soaring Debt

Government Deliberates New Plans for Low-Income Households amid Soaring Debt

SEJONG, Feb. 21 (Korea Bizwire) – The South Korean government is planning on new measures to support the livelihood of low-income families, who are among those suffering the most from the country’s recent economic struggles.  According to officials, South Korea’s household credit jumped by 11.7 percent in 2016 compared to the year prior, setting a [...]

Student Loans Turning Korean Youth into Credit Delinquents

Student Loans Turning Korean Youth into Credit Delinquents

SEOUL, Jan. 20 (Korea Bizwire) – South Korea boasts among the world’s highest college entrance and completion rates. In 2014, 45 percent of Koreans aged 25 to 64 had completed tertiary education, ranking sixth amongst OECD countries. The college entrance rate is at about 68 percent.  Of course, education doesn’t come cheap. Average annual tuition [...]