People Trapped in the 'Yeongkkeul Swamp': Debt More Than Twice Their Income

It has been revealed that our citizens hold loan balances amounting to twice their average annual income.

According to data submitted by the Bank of Korea to Assemblyman Cha Gyugeun of the Party for National Innovation on the 18th, the loan-to-income ratio (LTI) of households in South Korea for the first quarter of this year was 233.9%.

By age group, the LTI increased compared to the previous quarter in all age groups except those in their 50s.

The LTI for those aged 30 and under rose from 238.7% in the fourth quarter of last year to 239.0% in the first quarter of this year, for those in their 40s from 253.5% to 253.7%, and for those aged 60 and above from 239.1% to 240.8%. The LTI for those in their 50s decreased from 208.1% to 205.6%.

Among these, the 40s age group recorded the highest debt ratio across all age groups, with total loan balances exceeding 2.5 times their annual income. Assemblyman Cha pointed out that this is the result of 'yeongkkeul' (borrowing to the maximum) housing purchases.

Assemblyman Cha stated, "Those in their 40s, who should be the mainstay of domestic consumption, have fallen into a debt swamp," and evaluated that "the LTI is at its highest level in the past five years, a more serious situation than during the COVID-19 pandemic."