There is a lot of household debt, but this much?... 3 bad signs

<Anchor> It is a

friendly economic time.

Today (6th) will be with reporter Kim Hye-min.

Reporter Kim, Korea's household debt has been increasing dramatically recently.

<Reporter>

It was actually expected to some extent that household debt would increase.

Self-employed people, whose sales decreased significantly due to Corona 19, were forced to receive a lot of loans.

Also, because interest rates are low, there were quite a few people who invested in real estate and stocks even if they were in debt.

However, even though Korean families have a lot of debt, it is too much.

The Institute for Taxation and Finance conducted an analysis of how much household debt is to Korea's GDP.

In Korea last year, 98.6%.

This story tells us that Korean families owed almost the same amount of debt as the total amount of production in Korea during a year.

The global average is 63.7%, and the average in developed countries is 75.3%.

Compared to other countries, it is a very high number, well over 20%.

<Anchor>

I heard a lot of stories about high and high domestic household debt, but looking at the numbers like this, it really comes close.

By the way, was this household debt originally so much?

Or has it increased rapidly in recent years?

<Reporter>

Korea's household debt is increasing very quickly.

In short, compared to the previous year, it also increased last year, and if you compare it from 2008, it is more noticeable.

When the ratio of household debt to GDP in Korea increased by 27.6 percentage points, the world averaged an increase of only 3.7 percentage points.

Developed countries have rather reduced 0.9 percentage points.

Another problem is that the share of short-term 1-year debt exceeds 20%.

This means that you have to pay it off quickly within a year after you get the loan, which increases the risk of not being able to pay back, that is, the likelihood of falling into a liquidity crisis.

Most of the major European countries are under 10%, and the only country with a higher share of short-term debt than Korea was the United States.

<Anchor> There

is a lot of debt, the speed of growth is fast, then there is a lot of short-term debt, and there are a lot of bad signals.

However, in this situation, the ruling party recently brought up a story about increasing loans to some homeless people.

But isn't this contrary to the existing policy of clamping down on debt?

<Reporter> A

few months ago, I once told you that the government is cutting down on loans.

The amount of loans was limited to people with high incomes and people with good credit, so it has become difficult to receive more than 100 million won in credit loans recently.

Recently, however, the ruling party has made a statement on the contrary to ease the regulation on this loan.

The rate of loans that homeless or first-time buyers receive when buying a home is released by about 10% more than now.

They also announced that they would promote a '50-year mortgage loan'.

In the meantime, the ruling party has been making sudden remarks one after another, contrary to the policy stance of the financial authorities.

<Anchor>

In addition to the ruling party's remarks before the election, the Blue House is not that, and the market is a bit confused while doing this.

However, in this situation, the Financial Services Commission is about to announce a policy to reduce loans. What happens to this?

<Reporter> The

Financial Services Commission makes this announcement in the middle of this month, and it is a'plan to advance household debt'.

The restrictions on loans were not known to some extent.

DSR, that is, the ratio of how much of their income the borrower should spend on repaying the loan was calculated.

This includes not only mortgage loans, but also credit and card loans.

This means that all loans will be reduced after mid-April.

On the other hand, the ruling party is in a position that it will only judge the deregulation of loans by looking at the market situation in June.

If this is the case, the amount of the mortgage loan can vary significantly within a month or two.

However, if you look at all the comments from the Financial Services Commission and the Blue House officials, it seems that the ruling party did not come up with a plan after consultation.

There are also concerns that this will be an unrealistic election measure.

In addition, this inconsistency in policies will lead to distrust in the government and will only increase confusion in the market.