Household Debt Hits Another Record in Q1...Driven by Mortgage Loans [3-Minute Brief]

[At a Glance]
①Bank of Korea announces "Q1 2025 Household Credit (Provisional)"
②Majority of people cite "burden of high prices"
③Moody's, emergency interview on impact of US credit downgrade

MARKET INDEX : Year to date

○S&P500 has risen 20% over the past month

○Market is taking a breather after a short-term overbought rally

○Musalem predicts economic and labor market slowdown due to tariffs

Top3 NEWS

■ Household debt in Q1 hits record high at 1,928.7 trillion won..."Increase in mortgage loans from the Tohuhje policy to be reflected in Q2"

○Household credit in Q1 rose by 2.8 trillion won compared to the previous quarter...the pace of increase slowed
○Housing transactions increased in February and March; the rise in mortgage loans is expected to be temporary and reflected in Q2
○Household debt ratio is expected to stabilize downward in the first half of the year

■ Due to high inflation and economic downturn...6 out of 10 people say "Price stability is needed"

○KEF conducted a survey of 1,000 people nationwide
○Across all age groups, recovery of people's livelihood was the top priority
○"Policies to stabilize prices of agricultural and livestock products are needed"

■ "Moody's is a lagging indicator, but the government bond market is alarming...US interest rates could surge in 2-5 years due to debt and Trump policies"

○Barry Eichengreen, Professor at UC Berkeley
○Chronic fiscal deficit and debt in the US are serious
○Uncertainty over Trump policies such as tariffs and tax cuts is compounding the problem

Graphic News: Insurance payout disputes of "Pay vs. Can't Pay" turn to a decline after four years

○In Q1, 17 non-life insurers received 6,294 dispute mediation requests, down 10.7% year-on-year
○Legal precedents have accumulated for non-reimbursable treatments such as cataract surgery and manual therapy, which were frequent sources of disputes
○In Q1, 22 life insurers received 1,207 dispute mediation requests, down 5.8% year-on-year

the Chart: KOSPI threatened at the 2,600 level, short-term correction expected

○On the 19th, KOSPI fell below the 2,600 mark during trading...the downgrade of the US credit rating triggered the correction
○The prolonged rally has led to market fatigue...a short-term cooling-off period is expected for now
○Defensive stocks such as cosmetics, non-ferrous metals, and defense industry are drawing attention

Today's Key Schedule

○Domestic

○International

05:30 API Weekly Crude Oil Stock (US)

15:00 UK Consumer Price Index (YoY) (April)

17:00 ECB Financial Stability Review

18:30 Germany 10-year Bund auction

23:30 US Crude Oil Inventory

◇Lunch & Evening Commute Weather

○Lowest temperature: 20℃(▲4℃) ｜Highest temperature: 28℃(▲2℃)
○Chance of precipitation: 20% in the morning｜40% in the afternoon
○Fine dust: Moderate in the morning｜Moderate in the afternoon

Just 3 minutes for the essential, cost-effective economic news. Published daily at 8:00 AM.