This study surveys recent trends in household debt in Korea, which show a drastic increase since 2000. Results of comparisons of various international financial indicators, that measure the soundness of the household sector, as well as other alternative indicators are presented, with in-depth analysis of the cause of the recent surge in consumer debt. The debt capacity of the household is also evaluated under various scenarios on prevailing and expected macro conditions. Subsequent chapters analyze macro implications of the rising household debt with respect to its impact on consumption, business cycle, asset price, and macro prudential soundness in the banking sector.
A sectoral breakdown in the household lending market helps us analyze distinctive features of bank lending as well as non-bank lending, e.g., credit card companies. Some of the factors for the increase in loans in the household sector are highlighted in view of the sectoral development, especially with regard to the real estate market that serves as collateral for the emerging new category in bank assets. Also, a closer review of credit card companies involved in business activities regarding cash advances and card loans are also undertaken. These micro and structural approaches help us gain insight into measuring the probability of defaults in the household sector against various shocks, such as an interest rate hike and adverse external shocks, especially a decline in asset price.
This analysis is expected to provide useful information for the authority on formulating proper policy measures for financial and economic stability by way of helping to secure soundness of financial institutions as well as controlling the risk profiles of the household sector. The latter part of this report also contains transcripts of the seminar with reputable participants from all relevant categories.
최근 가계금융부채의 현황과 시사점(The current household debt situation and its policy implications)
|Series Title; No||정책조사보고서 / 2002-03|
|Subject Country||South Korea(Asia and Pacific)|
|Subject||Economy < Financial Policy|
|Holding||한국금융연구원; KDI 국제정책대학원|