Delayed Economic Recovery Leads to Sharp Rise in Q1 Household Loans at Insurance Companies [3-Minute Brief]

[At a Glance]
① Household loans by insurance companies surged in Q1... "Increase in emergency loans for ordinary citizens a key factor"
② Property taxes account for 11.5% of Korea's tax revenue
③ Trump: "I want to know the foreign students at Harvard... A reasonable request"

MARKET INDEX

○Closed for US Memorial Day
○Trump's delay of EU tariffs impacts markets
○Cryptocurrencies show modest but broad-based gains

TOP 3 NEWS

■ Tightening of household loans by banks leads to 'balloon effect' at insurance companies... Surge in mortgage and insurance policy loans

○Household loans by insurance companies in Q1 reached 134.9 trillion won, up 1.2 trillion won from the same period last year
○Due to DSR regulations at banks, household loans at insurance companies increased
○Q1 household loan delinquency rate was 0.79%, up 0.19 percentage points from the same period last year 

■ Korea's property tax burden is enormous... Highest share of tax revenue among OECD countries

○More than double the OECD average of 5.1%
○Consumption and income taxes are below average
○"Universal taxpayer principle for citizens is becoming difficult"

■ Trump tells Harvard to "disclose names and nationalities of foreign students"... US universities on edge

○Made the demand after efforts to cancel foreign student registrations were thwarted
○"Attempt to erode the autonomy of major US universities"
○"Concerns it may spread to other universities... US academic circles are tense"

Graphic News: "With losses in coins and stocks, people rush to catch the last train" -- Household loans jump by 3 trillion won in just two weeks

○Household loans at the five major commercial banks have increased by more than 3 trillion won so far this month

○Household loans increased by over 3 trillion won in 14 trading days

○With the third phase of DSR set to be implemented in July, even last-minute demand is surging... Financial sector on alert

Money-Making Law

■ Sejong, Gwangjang vs Kim & Chang, Yulchon: Showdown over 'lens pickup service'

○Legal dispute between Starvision, the top contact lens company, and Wink Company, the second largest
○Opticians' association claims the pickup service violates the Medical Technicians Act
○Wink counters that it is legal since it is not online sales
☞Read article:  https://www.asiae.co.kr/article/2025052615263444399

■ Why the dismissal of a police officer fired for three DUIs was overturned

○Court: "Worked diligently for 32 years"
○Dismissal would reduce retirement pay by half
○"The fact that it falls within sentencing guidelines is not a legal reason for the sentence"
☞Read article:  https://www.asiae.co.kr/article/2025052615313381897

■ "Paid $1 million in bribes to secure a contract" -- First indictment for violating the UK DPA

○Criminal trial omitted due to 'deferred prosecution agreement'
○A doctor from the Korea Institute of Geoscience and Mineral Resources is also implicated
○Some interpret that "the SFO is effectively overseeing DPA compliance"
☞Read article:  https://www.asiae.co.kr/article/2025052615525561862

* 'Money-Making Law', a content partnership column between Asia Economy and Law Times, is published every Tuesday and Thursday.

Today's Key Schedule

○Domestic

KOSDAQ Link Solution subscription, expected IPO price: 20,000~23,000 won

06:00 Korea Consumer Confidence Index (May)

○Overseas

15:45 France Consumer Price Index (MoM) (May)

21:30 US Core Durable Goods Orders (MoM) (April)

23:00 US CB Consumer Confidence Index (May)

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