Korea debt

Korea's debt-ridden households

Korean households continue to borrow at rates normally associated with the UK and US while inflation rises, creating a dilemma for the country's central bank.

<div style="text-align: left;"> South Koreans' usage of credit cards as a percentage of total consumption reached 54.9% in the first half of 2010 (AFP) </div>

Rupert Walker

May 27, 2011

Korea’s central bank continues to stand in splendid isolation among its peers in the region. Inflation is rising, yet it declines to hike interest rates. The reason probably lies in the country’s propensity to borrow rather than save — another exception to the Asian rule.

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