Sumary of Non-financial borrowing by gov’t, households surged last year:
- ‘Asset value increased faster than debt due to stock, real estate market boom’ By Lee Kyung-minNon-financial borrowing by the government and households surged last year, and asset prices grew faster than debt, according to government data on Thursday.
- This was due to the booming stock and real estate markets, amid low borrowing costs enabled by pandemic-induced emergency expansionary policies.
- The central bank said the across-the-board increase in debt among all economic participants resulted from heavy borrowing.
- But when measured by purchasing power parity (PPP) that excludes factors including poverty, tariffs and other transaction costs, the figure for Korea stood at $594,000, higher than France ($572,000) and Japan ($500,000).