S. Korea`s H1 disposable income sees slowest growth amid rising debt

SEOUL, Sept. 6 (Yonhap) -- South Korea's disposable income grew at the slowest
pace on record during the first half of this year amid rising household debts, a
central bank report showed Sunday.
According to the report by the Bank of Korea, the nation's nominal gross
disposable income amounted to 502.8 trillion won (US$405 billion) during the
January-June period, up 0.2 percent from the same half the previous year.
This marks the slowest growth ever for the first half since related data started
to be compiled in 1970, the central bank said.
The data comes as household debt in South Korea is on the rise, making it tough
for citizens to repay debts amid sluggish income growth.
At the end of June, outstanding household debts amounted to 697.7 trillion won,
up 5.7 percent from 660.4 trillion won posted in the same period a year earlier.
Based on the latest data, the ratio of household debt to disposable income rose
to 1.39 in June from 1.32 a year ago, indicating that South Koreans' ability to
pay back debts weakened over the past year.
The ratio is expected to grow further, experts say, as home-backed loans will
likely increase in the second half when the moving season starts in full swing.
According to financial data, outstanding mortgage-backed loans stood at 341.4
trillion won at the end of August, up 4.2 trillion won from a month earlier.
kokobj@yna.co.kr
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