Household Debt Vulnerability and Directions for Risk Management

KDI FOCUS May 7, 2015

13 Pages Posted: 21 Apr 2016

See all articles by Young Il Kim

Young Il Kim

Korea Development Institute (KDI)

Date Written: May 7, 2015

Abstract

Korea’s households and banks seem relatively sound in terms of their loss-absorbing capacities. However, a number of worrying signs are present. Some of the negative indicators are the rising share of non-bank consumer loans; the large share of real estate out of household assets, borrowing in the form of short-term balloon payment loans, and the credit risk of low-income indebted households. Against this backdrop, a sound and effective risk management system needs to be designed based on a proper assessment of the current situation while differentiating normal from emergency measures and ex ante from ex post measures.

Suggested Citation

Kim, Young Il, Household Debt Vulnerability and Directions for Risk Management (May 7, 2015). KDI FOCUS May 7, 2015, Available at SSRN: https://ssrn.com/abstract=2767400

Young Il Kim (Contact Author)

Korea Development Institute (KDI) ( email )

263 Namsejong-ro
Sejong-si 30149
Korea, Republic of (South Korea)

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