Durable measures needed to restore vitality, create jobs
Even as low economic growth has become the norm in recent years, the general perception is that the living conditions of ordinary Koreans have not worsened significantly. A survey of 20,000 households released earlier this week, however, shows that most Koreans are getting poorer.
The survey, jointly conducted by the Bank of Korea, Statistics Korea and the Financial Services Commission, found that average household debt amounted to 58.18 million won as of the end of March this year, up 6.8 percent from a year ago. In contrast, the average household income rose by a modest 5.7 percent to 44.75 million won.
What's disturbing is that households in the bottom 20-percent income bracket saw their debt surge 24.6 percent in the one-year period, whereas those in the upper 20-percent group experienced a slight improvement in their financial health. This means that the gap between the rich and the poor is widening and people in the middle and low income classes are facing more difficulty in making a living.
According to the report, one out of five households suffered from poverty during the past two years. And the number of households headed by teens and 20-somethings struggling in poverty to meet basic needs such as food and clothing is rising, whereas the elderly grapple with less poverty challenges.
That many Korean households are experiencing hardships in the midst of the economic stagnation is shown by other statistics that say the average assets owned by Korean households rose by a meager 0.7 percent in the one-year period. These households reduced expenses even for education and food by 2.9 and 2 percent, respectively, in belt-tightening efforts.
All these point to a dismal future for Koreans as a whole, requiring the new administration of President Park Geun-hye to do what it can to restore economic vitality and create jobs. The most worrying situation is that temporary workers and daily laborers with unstable income sources burden themselves with greater debt.
The key issue is how to normalize the property market that affects the economic state of the working class to a large extent. What's urgently needed is to stabilize prices of ''jeonse,'' a housing rental system unique to Korea in which tenants deposit a large sum of money instead of paying monthly rent to homeowners. Specifically, the government must strive to activate housing transactions so that debt-ridden households can repay debts by selling homes.
It's extremely deplorable in this regard that our political parties are stuck in a logjam over the opposition's demand for an independent counsel into allegations that government agencies, including the state spy agency, intervened in last year's presidential election.
With fewer than 20 days remaining before the end of the National Assembly's 100-day regular session, most bills, including the 2014 budget bill, are pending at the legislature. The rival parties should work out a negotiated settlement quickly to address the country's aggravating poverty problems.
Even as low economic growth has become the norm in recent years, the general perception is that the living conditions of ordinary Koreans have not worsened significantly. A survey of 20,000 households released earlier this week, however, shows that most Koreans are getting poorer.
The survey, jointly conducted by the Bank of Korea, Statistics Korea and the Financial Services Commission, found that average household debt amounted to 58.18 million won as of the end of March this year, up 6.8 percent from a year ago. In contrast, the average household income rose by a modest 5.7 percent to 44.75 million won.
What's disturbing is that households in the bottom 20-percent income bracket saw their debt surge 24.6 percent in the one-year period, whereas those in the upper 20-percent group experienced a slight improvement in their financial health. This means that the gap between the rich and the poor is widening and people in the middle and low income classes are facing more difficulty in making a living.
According to the report, one out of five households suffered from poverty during the past two years. And the number of households headed by teens and 20-somethings struggling in poverty to meet basic needs such as food and clothing is rising, whereas the elderly grapple with less poverty challenges.
That many Korean households are experiencing hardships in the midst of the economic stagnation is shown by other statistics that say the average assets owned by Korean households rose by a meager 0.7 percent in the one-year period. These households reduced expenses even for education and food by 2.9 and 2 percent, respectively, in belt-tightening efforts.
All these point to a dismal future for Koreans as a whole, requiring the new administration of President Park Geun-hye to do what it can to restore economic vitality and create jobs. The most worrying situation is that temporary workers and daily laborers with unstable income sources burden themselves with greater debt.
The key issue is how to normalize the property market that affects the economic state of the working class to a large extent. What's urgently needed is to stabilize prices of ''jeonse,'' a housing rental system unique to Korea in which tenants deposit a large sum of money instead of paying monthly rent to homeowners. Specifically, the government must strive to activate housing transactions so that debt-ridden households can repay debts by selling homes.
It's extremely deplorable in this regard that our political parties are stuck in a logjam over the opposition's demand for an independent counsel into allegations that government agencies, including the state spy agency, intervened in last year's presidential election.
With fewer than 20 days remaining before the end of the National Assembly's 100-day regular session, most bills, including the 2014 budget bill, are pending at the legislature. The rival parties should work out a negotiated settlement quickly to address the country's aggravating poverty problems.
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