Rival parties have raised concerns about growing household debt.
During a parliamentary audit on the Financial Services Commission on Thursday, Representative Je Youn-kyung of the ruling Democratic Party(DP) said the government is less serious about managing household debts than it should be.
Noting that the country's entire household debt amounts to one-point-145 quadrillion won, or 160 percent of the disposable household income, she partially attributed the growing problem to a rapid increase of risky loans triggered by deregulatory moves under the former Park Geun-hye administration.
DP lawmaker Choi Woon-youl also pointed out that the growth rate of household credit, or the sum of loans and credit purchases, has surpassed the country’s economic growth for the past ten years, raising speculation that it too will eventually cause problems.
Lawmakers from the main opposition Liberty Korea Party(LKP) warned fast growing household debt, coupled with a rising key interest rate, could be a detonator for an economic crisis.
[Photo : YONHAP News]