• Management & Information Systems Review
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• v.34 no.4
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• pp.83-95
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• 2015

This study examines influences of service employees' relational efforts on gratitude, indebtedness and purchase behaviors. The results follower like these. First, service employees' relational efforts have positive effects on gratitude(feelings of gratitude and gratitude-based reciprocal behaviors). And gratitude has a positive effect on purchase behaviors. Second, service employees' relational efforts have positive effects on indebtedness and indebtedness has a positive effect on purchase behaviors. It means gratitude and indebtedness can use marketing factors to influence on consumer behavior. But, indebtedness showed significantly close to the threshold, and the impact of indebtedness on purchase behaviors has the lowest than feelings of gratitude and gratitude-based reciprocal behaviors. Thus, it needs to be careful to use indebtedness as a marketing factor.

• 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.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.5
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• pp.403-411
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• 2021

This paper discusses the relationship between debt literacy, peer-to-peer lending, and over-indebtedness in Indonesia. It is essential because the number of loans on this platform continues to increase, both legal and illegal. Data was collected online in collaboration with commercial market research firms, JajakPendapat.net. Debt literacy and over-indebtedness were measured by self-assessment with questions from Lusardi and Tufano (2009a). Questions for debt literacy are about interest compounding, debt interest, and the application of time value of money in payment options. The question for over-indebtedness is about the amount of debt and the conditions resulting from that debt. By using descriptive methods, it is clear that the majority of respondents, both borrowers and non-peer-to-peer lending borrowers are debt illiterate, and those who have poor debt literacy have huge debt. Overall, only 1.85% of the respondents were debt literate. Those who live on the island of Java have better literacy because they are the center of economic growth in Indonesia. Debt from peer-to-peer (P2P) lending also has the potential to create problems, namely over-indebtedness. P2P lending borrowers also have very poor debt literacy. However, there is no difference in debt literacy between P2P lending borrowers and non-P2P lending borrowers.

• The Journal of Asian Finance, Economics and Business
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• v.8 no.12
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• pp.39-50
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• 2021

We investigate competition and its impact on borrowers' indebtedness (BI) in South Asian microfinance. Our empirical investigations are based on a comprehensive panel dataset of 355 MFIs located in seven countries in South Asia. The empirical results revealed that microfinance in South Asia is imperfectly competitive and the existing industry shows a monopolistic competition during the period under consideration. Also, the competition increased after the global financial crisis (GFC) in 2007-08 which implies that microfinance uses hostile lending behavior through the adverse selection that is highly risky and it can induce repayment crisis. The empirical findings also show that increased competition has significant negative effects on borrowers' indebtedness, particularly in large-scale and regulated microfinance organizations (MFIs). Instead of using equity financing, debt financing could be a better option. Finally, we find that while competition seems to have some positive effects in economic discourse by channeling technological improvements in products and services, its negative effects in microfinance outweigh the benefits over costs, particularly in poverty-stricken nations. The findings are helpful for the policymakers, microfinance industry, investors, borrowers, and Central Bank of South Asian markets.

• Korean Journal of Social Welfare
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• v.69 no.2
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• pp.171-190
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• 2017

This study examined the impact of indebtedness on depressive symptoms and suicidal ideation. The data came from the 4th to 10th waves of the Korea Welfare Panel Study, collected from 2009 to 2015. Analyses were conducted using logistic regression for longitudinal data that combines the fixed effects and random effects approaches. The results show that a high level of indebtedness substantially increased the risk of depressive symptoms. The household leverage ratio-the ratio of total household debt to disposable personal income-of 400% or higher increased the odds of probable depression by 50% compared with the ratio under 100%. When the percentage of personal income that goes toward paying debt is 30% or higher, the odds of probable depression went up by 66% than when the percentage of debt payment of disposal income is under 10%. The findings suggest that debt relief agencies and their programs need to incorporate means to identify and address emotional stress related to the excessive debt. This study also contributed to enriching the literature on social determinants of health by demonstrating that indebtedness is an important socioeconomic characteristic affecting individuals' mental health.

• Korean Journal of Culture and Social Issue
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• v.9 no.2
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• pp.127-164
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• 2003

This study investigates how Korean children and adolescents perceive their parents using the indigenous psychological approach. An open-ended questionnaire was developed by the first two authors to investigate reasons why children and adolescents feel grateful, respect, indebted, close, conflict, and distance with their parents. A total of 763 participants (212 grade three students, 267 grade eight students, and 284 grade eleven students) completed the questionnaire. The results can be summarized into three main points. First, the vast majority of children and adolescents feel grateful, respect, and indebted to their parents. They feel grateful, respect and indebted for the sacrifice and suffering they experience looking after the family. Moreover, they respects their parents because of their sincerity, blood relationship, benevolence, guidance and educational support. They feel indebted since they did not obey them, were not able to meet their expectations, and were not diligent in their schoolwork. They felt especially close to their mother. The conflict they felt was due to generational gap and in their academic performance. Second, age affects how they perceive their parents. The parent-child conflict increases with age. The feeling of indebtedness also increase with age. However, the feeling of gratefulness and respects decreases with age. The feeling of closeness with father also decreases with age. Third, socio-economic status and educational achievement of children and adolescent affect the perception of their parents. Those with higher academic grade and socio-economic status are more likely to feel respect and indebtedness and less likely to feel conflict and distance.

• East Asian Economic Review
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• v.19 no.1
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• pp.99-114
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• 2015

What explains the sharp increase in the Chinese economy's indebtedness, in particular the China's onshore corporate debt? Has the overall debt burden reached a threshold where it poses a systemic risk, thereby making the economy vulnerable to a "Lehman Moment" - with disorderly unwinding of the private sector and sovereign debt? What are the short and longer term implications of China's growing debt problems on domestic economic growth and the broader global political economy? What has Beijing done to ameliorate the problem, how effective were its efforts, and what must it do to deal with this problem?

• Korean Journal of Social Welfare Studies
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• v.48 no.2
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• pp.173-201
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• 2017

This study examined the degree of socioeconomic deprivation in the areas of material hardship, health, housing, employment, and social network among people using debt relief programs. The sample, 209 individuals, was recruited from major agencies offering debt relief programs, including Seoul Bankruptcy Court, Credit Counseling and Recovery Service, and Seoul Welfare Foundation. Data were collected through in-person interviews in 2016. The sample was compared in terms of the level of deprivation with the general population and the low-income group, extracted from the Korea Welfare Panel Study. The debtors group demonstrated a substantially higher level of deprivation on all the dimensions examined. For example, the proportion of people who suffered from hunger was 37.8% in the debtors group compared to 6.7% in the low-income group. The proportion of people who had suicidal ideation in the last 12 months was 57.9% compared to 19.2% in the low-income group and 2.7% in the general population. The level of deprivation was different by chapter choice of consumer bankruptcy. Policy and practice implications of the results were discussed.

• Korean Journal of Social Welfare Studies
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• v.48 no.4
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• pp.33-57
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• 2017

As there is a growing concern about the steady increase in the consumer debt and its potential consequences on individuals and families, this study examined the association between personal debt and the risk of domestic violence, which in this study is referred to as violence between man and woman who have a spousal relationship. We used the data from the Korea Welfare Panel Study collected from 2009 to 2016. We applied a generalized estimating equation approach for the analysis of panel data. The results show that the higher the ratio of personal debt to disposable income and the ratio of debt payment to disposal income is, the greater the risk of domestic violence. While the debt to income ratio played a role regarding was related to a heightened risk of domestic violence among the poor group, the debt payment to income ratio was associated with a higher risk of domestic violence among the non-poor group. Implications of the study were discussed.

• 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.