SEOUL, KOREA - Last year, the average amount of income per household rose 2.42 million won but per-family debt increased 3.68 million won. Of the households with bank debt, as many as 70 percent said it is increasingly burdensome for them to pay it back.

 

According to a survey "2013 Household Finance and Welfare" conducted jointly by the Korea Statistical Office, the Bank of Korea, and the Financial Supervisory Service on 20,000 families, the average income for each family in 2012 was 44.75 million won, up 5.7 percent from 42.33 million won in 2011. But the average per-family debt as of March 31 this year rose 6.8 percent to 58.18 million won from 54.50 million won during the same period.

 

That's largely due to a recent rise in rental prices, with the average rental deposit level rising 4.9 percent to 18.52 million won from 17.66 million won. The percentage of households with debt also rose to 66.9 percent from 65.1 percent last year. Of these, 70.2 percent answered that debt payment is quite burdensome.

 

According to the survey results, the poverty rate among households led by family heads 65 years of age was 50.2 percent. Poor families are defined as those whose annual income is lower than 50 percent of the median income of 21.36 million won.