South Korea: Expensive housing prices affect the economy

SGGP 09/16/2023 07:04

In a quarterly report submitted to the South Korean National Assembly, the Bank of Korea (BOK) noted that the house price-to-income ratio is at 26%.

This means the average worker would need to save their entire salary for 26 years to buy a ^90m2 house. This rate has gradually increased from 17.4% in 2020, to 23.6% in 2021 and 29.4% in 2022.

According to the BOK, when compared with basic economic conditions, housing prices in Korea remain high, regardless of income.

Since April this year, household loans issued by banks have steadily increased to a worrying level. As of August, the amount of loans increased by more than 25 trillion won ($18.8 billion) in just five months, with home mortgage loans driving the overall increase.

South Korea's household debt has been rising steadily, to the point where it could threaten financial and microeconomic stability, the BOK report noted.

Source: https://www.sggp.org.vn/han-quoc-gia-nha-dat-do-anh-huong-kinh-te-post705809.html