Average Debt of Farming Households Over 20 Million Won

The average debt per farming household went beyond 20 million won for the first time.

The National Statistical Office (NSO) told that as of the end of 2000, the average debt of the Korean farming households amounted 20.2 million 7 thousand won, increased by 9.0 percent over 18.53 million 5 thousand won of the end of 1999, in `the Report on the Economy of Farming Household in 2000` which is result from the survey of 3,140 farming households across the nation.

The report analyzed that the rise in the farmers` debt have mainly derived from the increased loans for farming and household spending, and the government`s decision to allow farmers to postpone the repayment of their debts. Especially, the loan for household spending such as the cost of living and education expenses recorded 3,882,000 won, up 22 percent from 3,182,000 won of the previous year.

The average income of farming household increased by 3.4 percent, from 22,323,000 (1999) won to 23,072,000 won (2000)

The income of farming household increased 331,000 won (3.1 percent) in the agricultural sector, and 398,000 won (5.7 percent) in the non-agricultural sector.

But the surplus, extracting tax, incidence and living cost from the total income, rather decreased to 4,361,000 won, down 5.1 percent from 1999.

The farming household expenditure exceeded the increase rate of the income, recording 18,003,000 won, up 5.1 percent from the previous year (17,123,000 won). The farming household expenditure constitutes as follows; housing (18.6 percent), transportation and communication (12.9 percent), education (10.9 percent), health and medical care (9.6 percent).

Meanwhile, the Ministry of Finance and Economy told that ``the government postponed the repayment of the farming and fishing household debt amounting 17 trillion 550 billion won on last January. And after `the special law for reducing the farming and fishing household debt` became effective, the government has supported 12 trillion 700.6 billion won to the farming and fishing household until the end of last month.

Park Joong-Hyun sanjuck@donga.com