This report analyzed the actual condition of household debt by using micro data on “poverty environment.”

The findings include that 26.8% of household with less then 50% of median income in 2014 had household debt, with indebted households having an average debt of 38.8 million won (median 15.2 million won). The debts of low-income households were due to housing and living costs. In 2014, debt-related housing was 34.4%, and debt of living cost was 32.0%. On the basis of interest burden, the finance poor were 2.8% in the low-income household and 1.1% in the high-income household. The finance poor in low-income households were expected to respond sensitively to changes in the external environment.

In order to better support those with household debt, it is necessary to link the labor market, lower the upper limit of the interest rate, and consult financial counselor to prevent debt.