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More Jobs in South Korea; In-depth Plan to Counter Rise in Household Debt


Ağustos, 24 2017
watermark Economic news

South Korea will implement an extensive plan in September that targets the rising household debt as stated by the country’s finance minister on Thursday. He also stated that concern regarding the household debt could not be fixed in a short-period of time. His rhetorics came out the day after the household debt data has been released as the mortgages also continue to increase in the second quarter but a slower pace contrast to the first quarter.


The most recent report from the central bank states that the household debt persists to rise worth 1,400 trillion won in the second quarter. This data was published following the implementation of financial restrictions in the last month to curb the overheated housing market. Some of the cities including Seoul was labeled as "overheated speculative districts" to limit money borrowers. However, homeowners shell out higher capital gain taxes needed in selling their houses.  


On the other hand, the government intends to boost employment by allocating 12 percent focused on job creation in the budget for 2018. At the same time, the minimum wage will also be increased to make sure the people are given proper income as part of its attempt to raise the income of regular people. Primarily, the goal is to secure household gains through higher earned income.



    






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