[Economic Outlook] How Much Have Yeongkkeul and Debt Investment Increased... Q3 Household Credit Statistics

The Democratic Party of Korea and the government have settled on a property tax relief criterion for single-homeowners at "under 600 million won." The major shareholder requirement for stock capital gains tax will be maintained at the current 1 billion won with a grace period. The photo shows the view of Seoul apartments from the observatory of the 63 Building on the 3rd. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Joo Sang-don] The third quarter household credit statistics will be released this week. It is expected to reveal how much household debt has increased due to the impact of the novel coronavirus disease (COVID-19), as well as factors like 'Yeongkkeul' (borrowing to the limit) and 'Bittu' (investing with loans).

The Bank of Korea will announce the 'Third Quarter Household Credit (Provisional)' results on the 24th. The household credit balance in the second quarter (KRW 1,637.3 trillion) was the highest since the statistics began in the fourth quarter of 2002. Mortgage loans surged by nearly KRW 15 trillion, and amid the Bittu craze, securities companies' credit extensions in the second quarter also increased to an all-time high.

In the third quarter, the Yeongkkeul and Bittu trends continued, and with the surge in jeonse (key money deposit) loans due to the jeonse housing shortage, it is highly likely that the scale of household debt has again broken the record for the highest ever.

On the same day, the Bank of Korea will release the 'November Consumer Sentiment Survey,' and on the 25th, the 'November Business Survey Index (BSI).' In October, as the strengthened COVID-19 social distancing measures from August to September were eased, the Consumer Confidence Index (CCSI) rose by 12.2 points within a month. This monthly increase was the largest in 11 years and 6 months since April 2009 (+20.2 points). The all-industry BSI for October (74) also jumped by 10 points, the largest increase since April 2009 (+11 points).

Statistics Korea will publish the 'Population Trends' on the 25th, which provides basic demographic data such as births, deaths, and marriages. While births have been decreasing, deaths have increased, resulting in a natural population decline for ten consecutive months up to August.

On the 26th, the second quarter (May-based) wage worker job trends will be released. Since employment conditions were near their lowest point in May, the data is expected to show which industries and groups suffered the most severe impact.

This content was produced with the assistance of AI translation services.