The gap between the rich and the poor widened due to the economic recession and the oversupply stimulus, the polarization of the luxury market and the low-cost market progressed, and the government started a policy to regulate household loans.
Imports of imported cars and high-priced consumer goods from Europe surged, and imports in the first quarter surged 12% year-on-year, and new loans for self-employed people surged 18% in one year.
In the consumer market earlier this year, after last year when economic stimulus was concentrated by export support, the luxury market began to lead the increase in imports and stimulate domestic demand.
According to the Bank of Korea's'Import Trend Assessment', imports in the second and third quarters of last year decreased significantly, but automobile imports showed a marked increase since the fourth quarter of last year. It was announced on the 29th that imports of leather bags and clothing also increased significantly.
As the domestic consumption of durable goods continued to increase and intermediate goods imports increased, the crude oil import price decreased from a sharp decline of -31.0% year-on-year in the fourth quarter of last year to -19.0% in January-February this year. Domestic consumer goods prices started to rise, rising from -0.3% to 14.4%.
The Bank of Korea's household debt data is KRW 803.5 trillion in loans for self-employed people last year, and 68 trillion KRW in 2019, which is an annual increase of 111.6 trillion KRW (17.3%).
For self-employed people, last year's loans (118.6 trillion won) were concentrated higher than the increase in non-bank loans (22.3%) and bank loans (14.9%), and the total amount of loans was 49.2 trillion won and 69 trillion won by banks.
Loan Borrowers' loans to self-employed new owners, who became new borrowers, borrowed 125 trillion won last year, soaring by 70% from 73 trillion won in 2015, up 50% from 88 trillion won in 2019.
Borrowers for self-employed loans to 2384,000 last year, an increase of 470,000 (24.6%) from 2019 (1914,000), and a 3.3-fold increase from 144,000 in 2019.
Prime Minister Hong Nam-ki said on the 29th, "In the course of responding to the Corona 19 crisis last year, the increase in household debt has re-expanded. Next year, the increase in household debt will be managed at the level before the coronavirus." In July, the full implementation policy was announced.
DSR calculates the principal and interest repayment burden for all borrowers' loans, and it is expected that new loans for self-employed people will be difficult due to the burden of principal and interest in all financial sector loans, including credit loans and card loans.
Prime Minister Hong said in a Chinese script on the 28th, “We are intensively supporting the budget of 68.8 billion won this year.” “Currently, five domestic vaccines are currently undergoing clinical trials, and two vaccines started phase 2 clinical trials in the second half of the year. It is expected to enter phase 3”, stimulating the bio stock price.
At a foreign press conference on the 27th, Prime Minister Hong said, "SK Hynix will make an effort to create a 120 trillion won semiconductor cluster for infrastructure such as electricity and water supply roads." “The government sees growth in the mid-to-late range of 3% beyond the initial forecast of 3.2% in 2021,” he said. “I think employment will gradually recover after 3 to 5 months after the economic recovery.” Said.
Prime Minister Hong's remarks appear to be a reenactment of a bureaucrat-led ordered economy that the US Republican Party declared as a “shining security umbrella economic model” due to the rapid growth of the Cold War dependence on “distribution after pre-growth” of the Park Chung-hee regime.
Prime Minister Hong's remarks seem to be a reenactment of a bureaucrat-led ordered economy that the US Republican declared as a “shining security umbrella economic model” due to the rapid growth of the Cold War dependence on the Park Chung-hee regime.distribution after pre-growth