The number of so-called “house poor,” or burdened by mortgage and loan debt, has emerged as a social woe amid the protracted slump in the property market.
When real estate prices surged between 2005 and 2006, many middle-income earners purchased houses that were out of their budget and have been financially pinched after housing prices plummeted following the 2008 global crisis.
The number of “high-risk” house poor, or those with no ability to pay off their mortgage debt in full even if they sell their houses and financial assets, reached 101,000 households, according to the Korea Institute of Finance.
Additionally, the number of the “potential” house poor, who would have to spend more than 60 percent of their income to pay off mortgage loans and interest, came to 570,000 households.
By Kim Yon-se (
kys@heraldcorp.com)
