Impact of Inflation on South Korean Household Finances

High inflation in South Korea disproportionately affects young and early middle-aged tenants, leading to increased financial burdens and decreased asset values.

### Impact of High Prices and Interest Rates on Different Age Groups and Housing Types in South Korea
* 💸 Due to inflation, the elderly and tenants in their 30s and young tenants suffered the most in South Korea from **soaring prices**.
* 📊 According to the Bank of Korea's analysis, different age groups and types of housing have been affected by **skyrocketing prices** and **increased interest rates** after 2019.
* 📈 As prices and interest rates increase (upper right on the graph), it indicates the groups that **benefit**, while moving to the lower left represents the groups that **suffer losses**.
* 🏠 Middle-aged people with their own homes are mostly gathered towards the right-center, benefiting from **asset values and high interest rates**.
* 👴 However, as they enter the elderly group of 65 years and older, even if they have their own homes, **these benefits start to decrease**.
* 👧 The group that suffered the most from high prices and high interest rates were **young people under 45 years old** and **early middle-aged tenants**.
* 💰 "When prices go up, it means the value of money goes down. Those who just have financial assets, not physical assets, see the **value of their assets decrease**."
* 🏦 "Young people who borrowed a lot of money to buy their own homes, in other words, those who were heavily in debt, suffered from **increased interest costs** due to the **sharp rise in interest rates**."

"어쩐지 삶이 힘들더라"…'최대 피해자' 30대, 한숨이 절로 (자막뉴스) / SBS

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The Impact of Soaring Prices and Interest Rates on Different Age Groups and Housing Types in South Korea

Statistics confirm that the high cost of living has most affected the elderly, tenants in their 30s, and young tenants in South Korea.

The analysis by the Bank of Korea shows how different age groups and housing types have been impacted by skyrocketing prices and increased interest rates after 2019.

The graph indicates that middle-aged people with their own homes have mostly benefited from antiques and high interest rates, while the young people under 45 and early middle-aged tenants have suffered the most from the high prices and interest rates, facing significant financial burdens.

The Impact of Rising Interest Rates on Young People's Debt

Young people with a lot of loans for homebuying or renting are facing a double blow from rising interest rates.

Depositing a large sum of money for a rental is causing them to lose value, especially for those who also took out a rental loan.

The Bank of Korea is seeing high interest profits from the decreased value of individuals' debts, but the impact is being offset by the high interest costs faced by the heavily indebted youth.

Financial Impact of Rising Interest Rates on Middle-Income Spenders

Middle-income individuals in their 30s and 40s, who were moderately well-off and actively spending, faced financial struggles due to rising interest rates.

The Bank of Korea's analysis revealed that this group, despite not being very wealthy, suffered losses as they borrowed and spent money, leading to challenges with the increasing prices.