(MENAFN) Raising worries over their financial stability and shrinking local consumption, an increasing number of South Korean households had issues paying off their debt with their revenue last year.
Additionally, based on the Hyundai Research Institute's data, marginal households whose debt-to-disposable income ratio is over 40 percent tallied at 1.58 million, accounting for 14.8 percent of the total.
The debt service ratio (DSR) measures the proportion of disposable income that households must devote to servicing their debt; hence a DSR over 40pct is often used as a threshold to decide whether or not to extend credit to borrowers.
Moreover, among the households that touched their debt limit, 62.3 percent plan to take additional loans within a year for living expenses, while 17.7 percent said they will borrow more to settle their debt.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.