April 26, 2024

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[THE INVESTOR] At least 1 in 4 low-income households are indebted, with debts rising with age, the Korea Institution for Health and Social Affairs showed on Jan. 19. 

As of 2014, 26.8 percent of the low-income group -- or those whose earnings are 50 percent or less than national average income -- owed an average of 38.97 million won ($33,100), leading to 1.43 million won in annual interest payments, in turn accounting for 13 percent of their annual income. 

The burden of debt increases with age, with the 18-34 age group owing some 22 million won in debt compared to those 55-64 burdened with 51 million won. The rising debt as people grows older is attributed to rising housing prices and children's education costs on top of the unstable job market, the report said. 

(theinvestor@heraldcorp.com)