ID :
188652
Wed, 06/15/2011 - 07:03
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Shortlink :
https://oananews.org//node/188652
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S. Koreans' ability to repay debt hits over 3-year high in Q1
South Koreans' debt-repayment ability improved to an over three-year high in the first quarter as gains in stock prices raised the value of their financial assets, the central bank said Wednesday.
The ratio of financial assets held by individuals to debt, a gauge of their capacity to redeem debt, came in at 2.33 as of the end of the first quarter, up from 2.32 from three months earlier, according to the Bank of Korea (BOK).
The first-quarter figure marked the highest level since 2.36 seen in the first quarter of 2007. Individuals refers to households, small business owners and nonprofit organizations.
As of end-March, financial assets held by individuals came in at 2,212.4 trillion won (US$2.04 trillion), up 35.9 trillion from the previous quarter.
Financial debt held by individuals reached 949 trillion won, up 11.7 trillion won from three months earlier. But if non-interest bearing debt is taken into account, financial debt held by Korean individuals reached 1,006.6 trillion won, marking the first time that such debt topped the 1,000 trillion won mark.
Korean individuals' capacity to service debt has recovered from the brunt of the global financial meltdown as the local economy recovered and the financial markets have stabilized, data showed.
The country's total financial assets stood at 10,630.7 trillion won as of end-March, up 3.2 percent from a year earlier. The growth rate marked the fastest expansion since 6.3 percent in the first quarter of 2009.
The ratio of financial assets held by individuals to debt, a gauge of their capacity to redeem debt, came in at 2.33 as of the end of the first quarter, up from 2.32 from three months earlier, according to the Bank of Korea (BOK).
The first-quarter figure marked the highest level since 2.36 seen in the first quarter of 2007. Individuals refers to households, small business owners and nonprofit organizations.
As of end-March, financial assets held by individuals came in at 2,212.4 trillion won (US$2.04 trillion), up 35.9 trillion from the previous quarter.
Financial debt held by individuals reached 949 trillion won, up 11.7 trillion won from three months earlier. But if non-interest bearing debt is taken into account, financial debt held by Korean individuals reached 1,006.6 trillion won, marking the first time that such debt topped the 1,000 trillion won mark.
Korean individuals' capacity to service debt has recovered from the brunt of the global financial meltdown as the local economy recovered and the financial markets have stabilized, data showed.
The country's total financial assets stood at 10,630.7 trillion won as of end-March, up 3.2 percent from a year earlier. The growth rate marked the fastest expansion since 6.3 percent in the first quarter of 2009.
