They have been disturbed particularly by the rising ratio of household debt to income and the precipitous decline in the household saving rate. The analysts point out, correctly, that the ratio of household debt to disposable income has risen especially steeply over the past five years and, at 1.2, is at a record high.
Igan, D and H Kang (2011) “Do Loan-to-Value and Debt-to-Income Limits Work? Evidence from Korea”, IMF Working Paper, 11/297.