By Kim Cheong-won
Staff Reporter


Nearly 16 percent of South Korean households’ debts exceed their assets, according to a survey.

Over 13 percent of the households have more than 200 million won in assets while 17.3 percent possess 100 million to 200 million won, showing that almost one in three households have more than 100 million won in assets.

According to the survey conducted by Social Welfare Research Center at Seoul National University, more than one in three households cannot save any money in banks.

It said 8.5 percent of households save less than 100,000 won per month. And 17.5 percent put 100,000 to 300,000 won in banks while 10 percent of respondents save over 1 million won.

Eighteen percent of the polled households have cut their food expenses or sometimes skipped meals due to financial difficulties.

The finding underlines the urgency of strengthening the social safety net.

The survey was conducted among 3,855 households nationwide at the request of the Ministry of Health and Welfare.

``The survey showed the serious problem of poverty in Korea. The worst thing is that the trend is expected to be aggravated by the continuing economic slump,’’ said one of the researchers who conducted the survey.

When it comes to their food budget, over 36 percent of households spend 250,000 won to 500,000 won per month while 31.1 percent expend less than 250,00 won. A total of 28.4 percent households spend 500,000 won to 1 million won in monthly food expenses, the survey showed.

Among the households who took the survey, seven percent of households have at least one family member who is a credit delinquent.

Credit defaulters were those behind on credit card, bank loan and other financial payments of over 300,000 won ($270) for more than three months.

Asked about serious social problems, 43.8 percent households answer that preparing for retirement is the most serious problem they face while 16.8 percent said health-related matters are the most serious.

When it comes to choosing a pension plan, 39.6 percent picked the National Pension Scheme while 38.3 percent said they prefer a private one, showing there is no big perceived difference in pension schemes.

Recent statistics showed there are still a large number of Koreans living in poverty amid the prolonged sluggishness of the domestic economy.

More than five million Koreans are living in poverty, with one in every 10 people on an income below minimum living expenses.

According to the ministry, the number of people below the poverty line was estimated to surpass the 5-million mark as of the end of June, up from 4.6 million in 2003.

The poor include those who earn less than their minimum living costs and those who make less than 1.36 million won per month.

The minimum living expenses were set at 908,000 won per month for a three-member household and 1.14 million won for a four-member household.

kcw@koreatimes.co.kr