top of page

Korea's Growing Debt Problem


A TV plays in the background while Gi-Hun gets a new haircut. Financial concerns are growing in Korea and household debt is growing as a share of GDP. South Korea has one of the highest debt-to-GDP ratios in the world and the highest in Asia. Debt isn't necessarily a bad thing because it can be used to increase growth and keep the economy functioning. Rapid debt growth, however, can be dangerous. There is a tradeoff between the short-term benefits of taking on more debt as a country and the medium-term costs of rising debt. In the short term, an increase in the debt ratio can help economic growth and employment, but after a few years, those effects can be reversed. Growth may be slower than it otherwise would and the likelihood of a financial crisis increases.

50 views0 comments

Recent Posts

See All

Squid Game starts with 456 players. Every time a player dies in, or outside an official game, SK ₩100 million is added to the prize fund. At the end of the first game, 255 players have been eliminated

In the first episode, 456 desperate contestants enter a game to win enough money to pay off their crippling debt and start fresh. South Korea has experienced an increase in household debt in the past

While a fight breaks out between players, Gi-hun ties the violence to his past as an autoworker. The flashback scene depicts the injustice faced by labor workers in the aftermath of the 2008 Global Fi

bottom of page