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Korean households' net assets average 230 mln won: report

All Headlines 14:30 December 29, 2010

SEOUL, Dec. 29 (Yonhap) -- The average South Korean household has net assets totaling 230 million won (US$200,000), with its debt averaging 42.6 million won, a government report showed Wednesday.

The report by Statistics Korea, the Financial Supervisory Service and the Bank of Korea said the average Korean household has total assets reaching 276 million won, including the home where the family lives.

The size of debt stood at 1.46 times that of disposable income, with the top 10 percent of asset owners accounting for 47.2 percent of all assets in the country, which is lower than 71 percent and 58 percent tallied for the United States and Sweden, respectively, which are also Organization for Economic Cooperation and Development countries, the report said.

Of assets held by Korean households, 75.8 percent were in real estate, with 21.4 percent being made up of financial holdings, such as bank deposits, stocks and bonds, according to the first report on household finances.

The report also showed that 67.6 percent of the average household's debt was related to borrowing from financial institutions, with 32.4 percent of the total being borrowed using collateral.

In addition, 59.5 percent of all households in the country were burdened by debt, with the average amount of money borrowed by these households exceeding 71 million won.

Among age groups, households whose main bread-earner is in his or her 50s had the largest assets, reaching just under 360 million won, followed by those in their 60s, although these groups correspondingly had the largest debt, the report said.

yonngong@yna.co.kr
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