2.1 times GDP of corporate and household debt… “Selective financial support”
[앵커]
Household debt surpassed gross domestic product for the first time, and corporate debt has reached a record high of 2.1 times.
As the coronavirus outbreak prolonged and credit risk increased due to a surge in debt, financial authorities ordered selective financial assistance.
This is reporter Jo Sung-mi.
[기자]
As of the end of the third quarter, household debt was KRW 1,682 trillion, which was higher than gross domestic product and GDP for the first time ever.
Combined with corporate debt, it exceeds twice the GDP, which is also the highest level ever.
This is the result of the so-called’debt investment’ and’spiritual’ craze to buy real estate or stocks by borrowing money, as well as the surge in debt-making companies and households due to the corona crisis.
There has not been any conspicuous signs of insolvency yet, thanks to the government’s financial support, such as giving low-interest loans to corona-affected households and businesses, or delaying repayment of principal and interest.
The problem is that as the coronavirus outbreak has gradually prolonged, it will not be possible to wait until the risk.
“It’s hard to see that such an impact will continue in the future. As well as interest rates and household loan maturity. If the main factors affecting debt repayment change, the repayment capacity of households can quickly deteriorate.”
When the Bank of Korea compares the recovery of corporate performance next year and the delay in performance improvement, the situation could be more difficult than this year under the pessimistic situation.
Under the pessimistic assumption, the proportion of so-called zombie companies that cannot pay interest on operating profits has reached 40%, and the number of self-employed households without debt repayment has increased to 2.2%.
The BOK and the Financial Supervisory Service made a voice saying that it is time to apply for companies or households that are capable of resuscitation, and those in need of restructuring due to a crisis since the pre-Corona crisis, although temporarily experiencing difficulties due to the corona crisis.
This is Yonhap News TV.
Yonhap News TV article inquiries and reports: katok/line jebo23
(End)