Households spend up to 40 percent of monthly paychecks to pay interest plus principal on loans to local banks according to the Bank of Korea . Citing a survey of 2 , 119 Korean households , the Bank of Korea said about 8 percent responded that they use 40 percent of their salaries a month to repay their debt . More than 60 percent said that they are struggling to meet deadlines in repaying their loans , indicating that rising household debt needs to be urgently resolved . Household debt was the biggest systemic risk to the Korean economy , followed by foreign exchange volatility on a weak yen and falling house prices , according to another recent survey by the BOK . About 57 percent of households have taken out a loan to pay for their housing , living expenses and leases . Inflation and housing price stability were picked as the top factors that the government should keep in mind when devising and implementing its economic policy , followed by growth and job rates , and income distribution . The central bank conducted the survey in December last year . The total household debt of Koreans rose to a record 959 . 4 trillion won during the last quarter of last year , undermining President Park Geun - hye ’ s election promise to expand the middle class . By Park Hyong - ki ( hkp @ heraldcorp . com ) [ Hot News ] ◆ Park takes helm ◆ Economic democratization overshadows inauguration ◆ Welfare , public safety focus of Park ’ s agenda ◆ Where have we seen it before ? ◆ British teen dies in fall from ski lift