By Yoon Ja-young
There was time when Koreans boasted the world's top savings rate, but now saving seems to be a luxury. A survey shows that most Koreans are barely making ends meet.
According to a survey cited in a report published by the Korea Institute for Health and Social Affairs, only 10 percent of Korean households say they can afford to save. Sixty-eight percent said they were making ends meet, neither saving nor borrowing money. Eleven percent said they were spending money from their savings, and 8 percent said they were getting loans.
Those in their 50s or older, earning 3 million won or less a month, and those with high school diplomas, were especially facing tough times managing their money. The households of non-regular workers were also often more likely to fall into deficit.
The survey also shows that Koreans are exposed to instability in housing and jobs.
When asked whether they might have to leave their residence due to the burden of housing prices within a year, more than one out of four among those in their 20s, 30s and 40s said "yes."
When asked whether they could continue working with their current employer if they wanted to, more than 10 percent of respondents were negative, with non-regular workers especially suffering job insecurity.
The report said the government should bolster the social safety net, pointing out that the country's welfare spending accounts for only 10.4 percent of GDP as of 2014, which is only half the Organization for Economic Cooperation Development (OECD) average of 21.6 percent.
According to the Bank of Korea, the net savings rate of Korean households stood at 4.5 percent as of 2013, falling short of the average of OECD member countries since 2001.
The savings rate hit a peak of 24.7 percent in 1988, when the country hosted the Seoul Olympics, but the number has gone down steadily since. Rising housing prices and falling interest rates are pulling down the savings rate.
There was time when Koreans boasted the world's top savings rate, but now saving seems to be a luxury. A survey shows that most Koreans are barely making ends meet.
According to a survey cited in a report published by the Korea Institute for Health and Social Affairs, only 10 percent of Korean households say they can afford to save. Sixty-eight percent said they were making ends meet, neither saving nor borrowing money. Eleven percent said they were spending money from their savings, and 8 percent said they were getting loans.
Those in their 50s or older, earning 3 million won or less a month, and those with high school diplomas, were especially facing tough times managing their money. The households of non-regular workers were also often more likely to fall into deficit.
The survey also shows that Koreans are exposed to instability in housing and jobs.
When asked whether they might have to leave their residence due to the burden of housing prices within a year, more than one out of four among those in their 20s, 30s and 40s said "yes."
When asked whether they could continue working with their current employer if they wanted to, more than 10 percent of respondents were negative, with non-regular workers especially suffering job insecurity.
The report said the government should bolster the social safety net, pointing out that the country's welfare spending accounts for only 10.4 percent of GDP as of 2014, which is only half the Organization for Economic Cooperation Development (OECD) average of 21.6 percent.
According to the Bank of Korea, the net savings rate of Korean households stood at 4.5 percent as of 2013, falling short of the average of OECD member countries since 2001.
The savings rate hit a peak of 24.7 percent in 1988, when the country hosted the Seoul Olympics, but the number has gone down steadily since. Rising housing prices and falling interest rates are pulling down the savings rate.
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