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Policy Study Analysis of Sustainability of Household Debt and Policy Implications December 31, 2018

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Series No. 2018-11

Policy Study KOR Analysis of Sustainability of Household Debt and Policy Implications #Financial Supervisory and Policy #Consumer Finance
DOIhttps://doi.org/10.22740/kdi.ps.2018.11 P-ISBN979-11-5932-397-3 E-ISBN979-11-5932-404-8

December 31, 2018

  • KDI
    Kim, Young Il
Summary
This study conducted theoretical and empirical analyses to identify the characteristics and causes of households’ financial difficulties in meeting their debt obligations. Based on the theoretical discussion of the life cycle perspective, we examined the factors that make it difficult to sustain debt obligations and conducted empirical analysis using household level micro data based on these discussions. Moreover, this study supplemented the analyses of the causes of defaults and related policy measures by interviewing professional practitioners who routinely deal with default cases, and suggested policy implications by integrating the above analyses.

Sustainability of household debt is significantly influenced by the size of life-time resources, the minimum required expenditure, the amount of debt to be repaid, the exposure to economic shocks, and the tools to absorb shocks, from the theoretical viewpoint of the life cycle hypothesis. Since the factors of default risk are not only related to the financial characteristics of households but also to the various characteristics of households such as demographic, sociological, housing, and residential characteristics, it can be empirically shown that the default risk is closely related to the overall characteristics of households. The results of this analysis suggest that the household over-indebtedness problem can not be solved by financial policy instruments alone, and that a comprehensive approach including economic, social, and welfare measures is necessary. In addition, empirical analysis shows that the characteristics observed in households with high default risk are significantly overlapped with those observed in economically vulnerable groups of households. This analysis suggests that the policy response to the excessive debt problem needs to be closely linked to the poverty or welfare policy area.

The theoretical and empirical analyses and their implications can be confirmed through interviews with professional practitioners who routinely deal with default cases. There were many similar opinions about the measures necessary to deal with the excessive debt problem, but there were some disagreements about some issues. Therefore, it is possible to prepare and implement policy measures relatively quickly for issues that are not disagreeable, but it is be necessary to have an active discussion process to form a social consensus on issues that are highly disagreeable among members of society.
Contents
발간사
요 약

제1장 서 론

제2장 선행연구와 본 연구의 특징

제3장 이론적 논의: 가계 채무이행의 지속가능성

제4장 분석 방법 및 자료
 제1절 분석 방법
 제2절 분석 자료

제5장 실증분석
 제1절 기초자료 분석
 제2절 가계 채무불이행 위험요인 추정
 제3절 채무자가 바라본 채무이행의 지속가능성 분석
 제4절 채무상환 이행에 따른 생계부담에 대한 분석
 제5절 소 결

제6장 채무불이행 관련 전문종사자 의견조사: 채무불이행 원인 및 대응 관련
 제1절 채무불이행 원인 관련 의견조사
 제2절 채무불이행 대응 관련 의견조사

제7장 정책 대응방향 논의

제8장 결 론

참고문헌
부 록
ABSTRACT
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