Lending to vulnerable households and consumption: evidence from Korea

by Jieun Lee, Ilhyock ShimUsing a large quarterly consumer credit panel dataset from Korea covering 2017–2023, we present four key findings on the characteristics, lending sources, and macroeconomic consequences of vulnerable borrowers-namely, delinquent borrowers whose debt repayment is overdue at least 30 days, and borrowers whose debt service ratio is higher than 50% but who are not delinquent („zombie borro…