• Journal of Family Resource Management and Policy Review
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• v.7 no.2
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• pp.45-57
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• 2003

This study analyzed the differences in household debt characteristics by wealth levels. The dataset used was the 2000 National Survey of Family Income and Expenditure. The major findings of this study were as follows; First, about 49% of sample owned some amounts of debt. Household in high wealth levels had lowest debt burden while households in low wealth level had highest debt burden. Second, the amounts of debt owed to financial agents were highest regardless of wealth levels. Third, all groups borrowed money for the purpose of purchasing real estate.

• The Journal of the Korea Contents Association
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• v.17 no.9
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• pp.396-405
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• 2017

Main purpose of this study is to analyze determinants of household debt among middle and old individuals aged between 32 and 76 that include Korean baby-boomers(born between 1955 and 1963), using a HAPC (Hierarchical Age-Period-Cohort) model and Korean Welfare Panel Study 2006-2016. This study includes 86,056 individuals. Research findings indicate that aging and period effects have statistically significant relationships with household debt levels, however, cohort effects including a baby-boomer generation do not. While household debt increases by 3,530,000 Korean won as age increases by one year, the rate of increase in household debt reduces as individual ages. In addition, employment and health status at the individual level have significant effects on household debt levels. The unemployed are more likely than the employed to have high household debt levels while unhealthy people tend than healthy people to have high household debt levels.

• Journal of Digital Convergence
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• v.14 no.5
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• pp.177-183
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• 2016

The purpose of this study is to analyze the affecting factors and debt characteristics with household debt. The method of analysis was used SPSS 22.0. The main results were as follows. First, psychological debt burden group were found to be lower academic background, more household members, job in agriculture, forestry and fisheries and women among demographic characteristics. This suggests the need for the governments who are interested in the risk from household debt. Second, psychological debt burden group showed higher level of debt and average monthly debt repayments. This study implies that it is necessary to do financial education and consulting. Third, psychological debt burden group seemed that the households with more the average monthly interest payments and repayments on income, the more total liabilities compared to total assets. As the ages get higher, it was gradually increased. It suggests that the development of psychological counseling program for debtor with household debt. Other factors(property prices or the financial environments) will be dealt with in the subsequent studies.

• Journal of Family Resource Management and Policy Review
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• v.22 no.1
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• pp.63-78
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• 2018

This study examined the insolvency of debtors using multiple-indicator approaches and compared the outcomes across income levels with the 2016 'Household Financial and Welfare Survey'. This study used (1) the total debt to total assets ratio (DTA), (2) the total debt service ratio (DSR), and (3) the Household Default Risk Index (HDRI) recently developed by the Bank of Korea. Households in the lowest income quintile were more likely to be insolvent than any other income group. Demographics, such as age and gender of the household head, and most of the financial variables significantly increased the likelihood of insolvency based on the DTA. The number of household members and job status increased the likelihood of insolvency based on the DSR. Also, age, gender of the household head, and most of the financial variables increased the likelihood of household insolvency based on the HDRI after controlling for other demographics and financial variables.

• Korean Journal of Human Ecology
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• v.9 no.1
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• pp.21-32
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• 2000

This study investigated the effect of householder's occupation on the debt structures of households. Household debts were categorized into six types according to borrowing sources: debts from banks, other financial institutes, employers, private sources, Gye, and retailers. Householder's occupations were classified into four groups: full-time employees, employers, farmers & fishermen, and part-time employees. The data came from the 1996 Korean Household Panel Study. It was found that the rates of holding each types of debt and the debt amounts were different according to householder's occupation. The human and economic resources to overcome the possible household debt problems were also different by the householder's occupation.

• Journal of Families and Better Life
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• v.19 no.1
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• pp.235-251
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• 2001

The purposes of this study was to develop household debt management education and counseling programs. The issues related with the consumer use of credit were identified and the selected programs of the United States were analyzed to develop the education and counseling programs for Korean households. Curriculums for the debt management education in three subjects and the process for debt counseling were suggested. Debt management education program included the issues related to general credit management strategy, credit card usage, and debt burden. For debt counseling, worksheets of problem identification, budget analysis, and action planning were developed.

• KDI Journal of Economic Policy
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• v.38 no.4
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• pp.23-44
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• 2016

Household debt in Korea raises concerns about the resilience of the economy due to its size and quality. Against this backdrop, we investigate if household leverage matters for private consumption in adverse economic environments even without severe financial disruptions. We find that the balance sheet positions in terms of the leverage ratio may weaken consumption growth. We also find that the depressive effect of debt on consumption may differ across types of consumer spending and household characteristics. In particular, the effects of indebtedness have been much stronger in relation to durable goods expenditures than in other areas. In addition, debtors in high-income (wealth) groups have also shown downward adjustments in consumption even more so than low-income (wealth) groups. These findings imply that debtors' precautionary behavior may serve as an important channel from leverage to consumer spending.

• Korean Journal of Rural Living Science
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• v.10 no.2
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• pp.1-14
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• 1999

The purposes of this study are to identify the factors affecting asset and debt choice behavior of rural households as well as to examine the differences in asset and debt choice behavior between rural and urban households. The data are taken from Korean Household Panel Study conducted in 1996 by Daewoo Economic Research Institute. Among 2,833, a final sample of 2,625 -537 rural and 2,088 urban sample- is used in this study. The results show that, the asset and debt choice behavior of rural households is totally different from that of urban households. The ratio of rural households holding all types of financial assets and sales credit is less than that of urban households while the ratio of holding real asset and loan is greater in rural than urban households. The most influential variable on the ownership of asset and debt is the age of household head. And there exist interrelationships between ownership of different assets and debts.

• The Journal of the Korea Contents Association
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• v.17 no.9
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• pp.145-158
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• 2017

Lately, rapid increase of household debt and economic change has affected cash flow of household, insolvent risk has increased by high repayment burden of the principal and interest. Previous researches was progressing various discussion, composed objective repayment burden index about household debt. But it was relatively insufficient about perception of consumer. This research compare and analysis determinants of subjective repayment burden in household debt by income quintile, using 2016 Household Financial Welfare Survey. The research result is follows. The income 1 and 2 quartile groups have the higher monthly rent and credit card loan and the housing preparation loan ratio, the higher burden on repayment of the principal and interest. The Income 3 and 4 quartile groups have the higher 60s or older and member of household and real estate mortgage loan, the higher burden on repayment of the principal and interest. The Income 5 quartile group has the higher loan ratio for debt repayment preparation, the higher burden on repayment of the principal and interest.

• KDI Journal of Economic Policy
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• v.38 no.3
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• pp.53-77
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• 2016

Financial soundness in the household sector matters for financial stability and for the real economy. The level of household debt in Korea raises concern about the financial soundness of the household sector due to its size, growth rate and quality. Against this backdrop, we assess the financial vulnerability of borrowers based on an analysis of credit bureau (CB) data, in which the actual credit activities of most individuals are recorded at a high frequency in Korea. We construct over-indebtedness indicators from the CB data and then assess the predictability of forthcoming defaults. Based on the over-indebtedness indicators, we show how borrowers are distributed in terms of over-indebtedness and how the over-indebted differ from average borrowers in terms of their characteristics. Furthermore, we show how the aggregate credit risk in the household sector would change under macroeconomic distress by analyzing how each borrower's credit quality would be affected by adverse shocks. The findings of this paper may contribute to assessing household debt vulnerability and to enhancing regulatory and supervisory practices for financial stability.