Continuous increase in household debt poses high risk.

By bne IntelliNews October 25, 2012
South Koreas household debt has peaked to a high-risk level due to a continuous market slump, making it necessary for the government to implement cautious steps to solve the issue. As reported by Yonhap English News, Jeong Young-sik, an economist at the Samsung Economic Research Institute, stated that the countrys property market is weak and households borrowing from multiple financial firms and people with low creditworthiness have been increasing. The countrys household debt was recorded at USD 835.1bn by the end of June this year and is considered to be the main reason for the economys slowdown. The households indebtedness results in reducing the domestic demand and thus crimping the economic growth.

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