|6 trillion won in self-employed loans|
Park Yong-joo, a reporter for Yonhap News Agency, said, "As the Bank of Korea has increased interest rates, lending by self-employed people and lending money from three or more financial institutions are emerging as the main factors behind the insolvent household debt.
In the financial market, considering the composition of loans made up of high credit delinquents and the soundness of loans by financial institutions, the possibility of the rate increase is unlikely to escalate into an immediate crisis.
However, there are concerns that a growing interest burden could lead to a gradual drift in the softening of the weak, as the employment market shows no sign of improvement amid declining income among the lower classes.
◇ Self-employed loans that have been rushed to the secondary financial sector
As of Thursday, the government, the central bank and private think tanks are paying attention to the loans as one of the weakest links since the central bank`s interest rate hike.
First of all, the size of self-employed loans is not properly aggregated. The Bank of Korea estimated that the self-employed loans amounted to 590.7 trillion won as of the end of the second quarter, but since self-employed loans are often included in household loans, this is also difficult to estimate.
Another cause of concern is the rapid increase in growth. With household loans expected to grow at around 7 percent this year, self-employed loans rose 15.6 percent in the second quarter from a year earlier. The increase is more than double.
It is also important to look into the fact that many self-employed loans were made in the second financial sector.
As of the end of this year, the growth rate of self-employed loans stood at 10.8 percent, while that of mutual savings banks at 45.7 percent, 41.3 percent at savings banks and 15.9 percent at loan firms were relatively high.
Given that the interest rate of loans in the secondary financial sector is higher than that in the banking sector, chances are they are exposed to a more vulnerable situation.
Considering the fact that the proportion 스포츠토토사이트 of borrowers in their 60s and over has increased from 20.4% at the end of 2014 to 24.2% in the second quarter of this year, it is also possible to say that the baby boom generation has led to increase in business start up.
Since they often do not have any other sources of income, they are likely to become "crisis households" if their own businesses fail.
| Post by : kissmarclovers5