With the Impact of the Coronavirus, Will Family Loans in the Korean Real Estate Market Become a New Financial Crisis?

DOI

10.2991/aebmr.k.220502.008How to use a DOI?

Keywords

Economic growth; Covid-19; Family loans; Korean Real Estate Market

Abstract

Affected by COVID-19, the land business has been incredibly loose to advance the improvement of the land business, which has prompted another financial issue in South Korea. The objective of the current government is to control the development pace of family credits beneath the financial development rate, to make a delicate arriving of family obligation trouble. This is since, supposing that family advances are decreased temporarily, they might be joined by significant secondary effects. Indeed, family advances expanded in twofold digits (around 11%) from 2015 to 16, diminished to 5.6% in 2018, and 4% in 2019. However, with the flare-up of COVID-19, the circumstance switched, as of August 2020, the development rate has reached 6.2%. To this end family obligation the board is critical once more. In view of the factual information model of the extent of family obligation in GDP given by BIS and IIF, this paper concentrates on the size of family obligation in South Korea. The examination shows the earnestness of the family obligation issue, yet it additionally advocates that the expansion of South Korea’s obligation is fixated on the major league salary and high credit class, so it is somewhat protected. Nonetheless, with the ascent of house costs in the capital circle, the weight of big league salary and high credit classes has likewise expanded. When the unforeseen inside and outer shocks lead to a sharp decrease in house costs and increasing loan fees, the quantity of individuals who can’t bear obligation might increment. Accordingly, in the Korean housing market under the effect of the pestilence, family advances will turn into another monetary circuit.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Yunli Chen
PY  - 2022
DA  - 2022/05/16
TI  - With the Impact of the Coronavirus, Will Family Loans in the Korean Real Estate Market Become a New Financial Crisis?
BT  - Proceedings of the 2022 International Conference on Urban Planning and Regional Economy（UPRE 2022）
PB  - Atlantis Press
SP  - 33
EP  - 37
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220502.008
DO  - 10.2991/aebmr.k.220502.008
ID  - Chen2022
ER  -