When will Korea's financial crisis come?

When will Korea's financial crisis come?

If the debt level of households and self-employed people increases, especially when the debt growth rate is higher than the income growth rate, delinquency increases, and eventually leads to financial institution losses, resulting in a financial institution crisis

Despite the recent rise in delinquency rates of small and medium-sized financial institutions, including large banks, government authorities still maintain clichés and attitudes, calling the continued rise "manageable."

Given the historical lessons of the 2008 financial crisis in the United States, I don't think the current delinquency rate of financial institutions is sufficient because it neglects the current trend and continuous rise in delinquency rates or is a "manageable level."

Even during the 2008 financial crisis, the delinquency rate was initially slightly higher than usual, but as the financial crisis progressed in earnest, the delinquency rate continued to rise to a level that financial institutions could not afford, and many financial institutions were unable to avoid bankruptcy

The delinquency rate is a "follow-up indicator" and by no means a "follow-up indicator."

It is true that the delinquency rate of financial institutions is higher than usual, but it is a crucial reason why I personally disagree with the Government's claim that it is "manageable."

Korea's financial crisis is considered the fate of the Korean economy, which is hard to avoid