Debt of low-income, low-credit borrowers increased by US$ 3.5 bil. y/y in 2018
Debt owed by Koreans with low incomes and…
or poor credit continues to grow. In 2018, it rose by 3-and-a-half billion U.S.
dollars on-year… to reach 76 billion. The Bank of Korea points out debt was mainly
in the form of loans from non-bank financial institutions… and other personal loans. The debts of these low-income, poor-credit
groups accounted for 6 percent of the country’s total household debt. The central bank also mentioned that while
household debt grew more slowly last year, it’s still growing faster than incomes and
accounted for 86 percent of nominal GDP.