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Why household debt held by Korean seniors is problematic: An international comparison

Author

Listed:
  • Jiseob Kim

    (Korea Development Institute)

Abstract

This paper analyzes why the household debt held by seniors in Korea is highly vulnerable, compared to the US and major European countries. Based on household-level micro data, seniors in Korea have lower income, lower income stability, and fewer financial assets than those in the US and European countries. In addition, the macro-financial environment over the last decade in Korea promoted debt accumulation. Hence, if Korean economy is hit by adverse macro-financial shocks, such as a sudden increase in interest rate or a decline in house prices, seniors in Korea are expected to be impacted most seriously.

Suggested Citation

  • Jiseob Kim, 2016. "Why household debt held by Korean seniors is problematic: An international comparison," Economics Bulletin, AccessEcon, vol. 36(4), pages 2080-2093.
    • Handle: RePEc:ebl:ecbull:eb-16-00036
    as

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    File URL: http://www.accessecon.com/Pubs/EB/2016/Volume36/EB-16-V36-I4-P203.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Household debt; Household asset; Household income; Income stability; Financial asset; Macro-financial environment;
    All these keywords.

    JEL classification:

    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • G0 - Financial Economics - - General

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    Access and download statistics

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