Consumer Credit Market in Korea since the Economic Crisis

Abstract

Debt-to-income ratio is defined as the ratio between total household debt and disposable income for households and private unincorporated enterprises. Debt-to-asset ratio is defined 164 Chang-Gyun Park Fig. 5.2 Trend in ability-to-repay indicators Source: Bank of Korea. Notes: Debt-to-income ratio is the ratio between household debt and household disposable income. Debt-to-asset ratio is the ratio between individual debt and asset in the Flow of Funds table. Source: Bank of Korea. Notes: Housing finance institutions include the Korea Housing Finance Corporation and the National Housing Fund. Other deposit-taking institutions include savings banks, credit unions, and mutual saving cooperatives.

Trends in Educational Differentials in Suicide Mortality between 1993 - 2006 in Korea

“…The sharp increase in credit delinquency since 2002 can largely be attributed to an economic policy that encouraged using credit cards to boost the stagnant economy in 2000 - 2001 44. The credit delinquency, which caused social problems such as disintegration of family and suicides, happened much more often in low or middle income group than high income group 43. Second, the increase of job instability (precarious employment) after and during the restructuring of Korean economy following the 1997 economic crisis, which was more likely to be concentrated among the low educated, might have contributed to this widening 6.…”

“…First, the number of credit delinquents increased in 1998 and declined slightly in 1999 and 2000, and the number of those rose again in a rapid pace from 2002 to 2004 - to be called as the credit card crisis in Korea, and fell very slowly thereafter. 43 The sharp increase in credit delinquency since 2002 can largely be attributed to an economic policy that encouraged using credit cards to boost the stagnant economy in 2000 - 2001. 44 The credit delinquency, which caused social problems such as disintegration of family and suicides, happened much more often in low or middle income group than high income group.…”

“… 44 The credit delinquency, which caused social problems such as disintegration of family and suicides, happened much more often in low or middle income group than high income group. 43 Second, the increase of job instability (precarious employment) after and during the restructuring of Korean economy following the 1997 economic crisis, which was more likely to be concentrated among the low educated, might have contributed to this widening. 6 The proportion of precarious workers which was about 40% of all wage workers, before the 1997 crisis, reached 57% in after 2000.…”