South Korea's Growing Household Debt | Undercover Asia | Full Episode
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- เผยแพร่เมื่อ 24 เม.ย. 2020
- Every minute, South Korea's household debt rises by US$90 thousand dollars. Every 12 minutes, a Korean is declared bankrupt. Ordinary households now owe some 1.8 times their disposable income. The country's 3 million mom and pop stores are taking out risky high interest rate loans, and even its high school students are borrowing from loansharks. Undercover Asia explores the deeper reasons behind South Korea's household debt crisis, and whether COVID-19 may well tip the country over the edge.
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About the series: Undercover Asia uncovers the hard truths in the underbelly of Asia and shines the light on the plight of the disenfranchised and the displaced. Find out what's the unexpected fallout in Indonesia from China’s decision to ban plastic waste; the causes and consequences of South Korea’s massive household debt; the rise of non-consensual porn in Singapore; and the dark side of the quest for white skin in the Philippines.
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I’d rather look poor but financially secure. Than to look wealthy but wallet is empty.
If people mock and disrespect me for what i can afford, its more of a reflection of them and not on me.
This is really sad. The Chinese people, and particular east asians have been known historically for being very good savers and/or very careful in their spending i.e. you would never even spend more than 40% of what you earn if you can. What happened in the past 20-30 years?
@@leealex24 Probably most of our generation are affluent as compared to our parents, grandparents who face hardship, war etc while we do not and become complacent. Most things paved for us. My parents at best are secondary educated my father primary school educated and sold newspaper or whatever on the streets - as a child. So they are frugal. Also the housing prices are so far apart during their time in their 20s and 30s compared to now. In about 2000 while I worked in a petrol station, a guy proudly told me he has multiple credit cards and repeated it when I didn't look impressed the first time.
@@AtlantisAng True that Asians are more affluent. But, I think affluence to me is having huge income/wealth not a lot of debt! Worst, having more expenses than your income or no income.
@@leealex24 I guess it's like"oh I have the money to spend on xxxx" then overspending keep thinking they can pay off then the debt roll and roll into an avalanche. E.g a min income of 30k to be able to get a credit card. My parents cannot but I can. Then I get addicted to branded good like the ones in the vid, for example. Then roll and roll the debt. Monthly vicious repetition.
I wouldn't be able to get into credit debt if I can't even get a credit card. For me I don't, cos I know I'll overspend.
@@AtlantisAng It's fine to spend lavishly if you can afford it. But, if you spend way above your means, that's not superiority, that's maximum stupidity!
My parents used to say “if you cannot pay in cash, you simply cannot afford it” & I agree absolutely.
American college says hi
Not necessarily if it’s buying a house. There is “good” debt.
Rule of thumb even when buying in cash... 'if you cant afford to buy it twice... Dont bother buying it in the first place...' I am a 25 yo minimum wage worker in Dubai however I always have a positive bank account... I never got myself into any kind of corporate debt.
THIS. Another thing that my father taught me was to never buy Credit Cards. Understandably, there are many benefits with a Credit Card however the chances of you managing the card spending wrongly is equally high.
What if they use UPI ?
I remember during my first year as an international student studying in a US high school, one of the Korean kid told me that some Korean (international students) don't like Chinese (international students) because they looked "poor". But in reality, most Chinese students in the US had wealthy families that supported them to study abroad. Then I began to understand that he was referring to Chinese kids not buying expensive clothing and making themselves look good.
Jokes on him
Chinese people have more luxury than korean
Bruh, Chinese kids in my University had most expensive cars even though most of them were only here temporarily.
Weird. When I went to US to study, Chinese students were the ones driving around in sports cars and bikes and fitted themselves head to toe in brands to the point of cringe.
@@hellosammy4105 Nobody had a car back in sophomore year of high school and we had to wear uniforms for the first school I went to. In my second high school and university there were spoiled kids with flashy cars/designer brand clothing, but most seemed normal to me.
I can relate to this. I'm a single mom and basically an orphan. Got a minimum wage job back then and the bills just kept on piling up and I had to resort to loans. From one loans to another until I drown from debts. And then I loose my job because I got sick. I thought of suicide so many times. I got depression and even heard voices in my head. The only thing that was keeping me sane was my daughter. It lasted for 2 years and by God's grace, I got a good paying job. I literally starved myself just to save money to pay off my debts. My daughter was even malnourished then because of lack of food. All of this happened 8 years ago and now my debts are cleared out and I'm earning enough to raise my daughter decently.
Happy to hear. God bless you 🙌
Glad you worked it out, god bless
Yes, I can relate 👍💓 sometimes life just happens, no matter how responsible or what you do. 🤷
Amazing work on your part - well done! Your daughter should be very proud of her mother!
Please get unemployment, assisted housing, and food stamps next time. You literally qualify for everything to live without a job as a single mother in U.S.
My Dad always said if you can’t pay for it with cash, don’t buy it. You don’t need to go into debt for anything.
Your dad is a very smart man. You work towards earning enough money to pay for the things you need. If you have a little extra, it goes into savings. If you want to buy something you dont really need, you work longer hours.
But interest rates in Korea are quite low, especially for housing. Thats why everybody loans and pays for years or a decade. In a city like Seoul, rent should be around $ 1,500/month for a family. If the bank interests are low and you pay somewhere similar to the rent its better to get your loan. At least the house will be yours.
But use a credit card so you get 1% cashback and purchase protection. Then pay the card in full with the cash you alloted for that purchase. Free money + Protection! Win win
Tats the thing about credit cards is that you think you’ll have a job, good health and people spend spend spend. But just like how 2020 is, things can come up unexpectedly. If you don’t need it, don’t get it.
OooC my Dad had several places that refused to take his all cash payments & wanted him to take loans out because he had excellent credit. He was like America would rather you have debt than pay things for cash.
Moral of the story: live within your means and don’t try to show-off.
Bankers: "hmm, if you stil canl make it on your own means, it means you stll get too much"
Moral 2 of the story: The modern economy is FAKE !
while those who are the richest are the most simple in what they wear. (e.g. bill gates and mark zuckerburg)
this is why minimalist living is a good choice as well. no many stuff, no stress in maintenance and you can save more.
I lived in Korea for many years. There, building and maintaining status by showing off one's conspicuous consumption is a national addiction. Even elementary school students feel they have to keep up with their peers' purchases or lose face.
also moral of the story: never lend your money to your friends. just let them die and find new better friends.
In the Netherlands, we have a law that is: contract is not broken by purchase. So if a new landlord buys the property you are renting they cannot, by law, break the contract you have from the previous landlord. So it is important to read and negotiate a good contract. We also have laws that state rent can only be increased 2-3% once per year.
Absolutely shocking, that this woman lost her business because the landlord raised rent x3 or x4, just like that.
and that's why you are dumb socialists
That's called rent control, and the result is people are trapped in their housing because the moment a property is vacant the rent skyrockets. You are also guaranteed a 3% rent rise every year, because no landlord will give up the limited increases, regardless of the economy.
Imagine call people from another country poorer, inferior, and so on but you are the one who burdened by DEBT FOR LIFESTYLE not for Investment or to meet daily needs
note : my personal experience
Koreans look down on dark skinned South East Asian...
I actually ugly cried when the narrator said the lady only managed to make a sale at 6pm when she works 12 hours shift a day while her husband is in jail for attacking their tyrant building owner, and the son has to drop out of college to help repay family debts.
The thing with dropping out of college is if he stays the course he could get a better paying job. Paying for parents' mistakes is a band-aid on the short term & an axe wound for his future!
@E 10 The student could get a part time (or full time) job & work w/the school for financing options to pay off their own debt - many students works & attend college (& raise families) at the same time.
I didn’t ugly cry, but I did have tears. 😢
@@silververnallbells191
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@@silververnallbells191 ui. Il
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"I don't care about interest rates,"
Well, that explains all your failed businesses
Yes, any business is about cash flow end of the day
@@chocolatefaerie Unbelievable, 20% - 30% interest rate? Even a 5% interest loan I also think many times before getting.
@@leealex24 my home loan is at 12 percent, at the time was prime minus 1. My credit card which I don't use, charges 26 percent. My overdraft which I also don't use, at 28 percent. This is natural bank of south Africa btw. All legal, normal rates. How to make the poor people of sa poorer.
@@leealex24 Aren't bank interested rate mainly dependent upon the inflation of the country?
My friend's cousin got himself into massive amounts of debt from renting sports cars and designer clothes to impress his dates when he first moved to Seoul (from the Korean countryside). That was 6 years ago and he's still paying for it, despite not actually ever ending up becoming serious with any of the girls he took out. It's terrifying
CRA cra
I personally knew a guy like that. and Car poor was a serious issue in Korea for sometime, lol. I used to drive in North America because I had to but you don't need one in Seoul. Everything can get delivered but most people have cars in Seoul lol... It's just not economically wise.
I honestly don’t know why u hv to go through such extreme length to impress someone if you’ve got to do that to get a girl, it’s better of being single then cos it’s not gonna work😮
Laws should be put in place to stop irresponsible loans from banks and predatory credit card companies.
bro got run over hard
my grandpa looks like a broke construction worker who drives a beat up american truck but is an engineer and owns a few houses in the usa, a steel detailing company, and a winery in asia. when he noticed i cared about my looks too much, he said, "look at all these people, they don't know me, they have no idea how much money i have. they don't have to respect me, the people who know me, do."
Did you know the word Mortgage is French? It is a portmanteau consisting of two French words: "Mort," meaning death, and "gage" means pledge. A long time ago, when a person took out a loan of its size, it typically meant the borrower died before fully paying off the debt. So Mortgage literally means, "In debt until death."
this is interesting information. thank you!
@@izumiaozora6130 You're welcome. I think a better word would be a new portmanteau called "prêtgage," which means "loan pledge." That sounds better than "In debt until death," and the meaning is more modern considering most people pay off their mortgage before they die. 🙂
Woah, cool (and grim) info!
This is what mortgage actually is. Paying house related debts for all of the life until retirement.
@@aabb-zz9uw Retirement doesn't mean death, unless you're a Blade Runner.
Aftaer watching this documentary, Squid Game suddenly make more sense.
Got dangit, I literally scrolled down to make the exact same comment. But yeah, between Squid Game and Parasite, seems like this is a big issue in South Korea lately.
@@rabd3721 hong king is pretty bad too
Yes agree! Most of them were drowned to debt and severely stress life.
Yeha man
I just saw the first episode tonight!!!!! I've been to Korea several times (Seoul was beautiful at night)..a very safe city...but I didn't know about all the debt....
While living in Seoul I saw lots of people wearing designer clothes. It really surprised me until my friend explained that the clothes are either fake, gifted, or bought with an allowance or credit. The people that are actually wealthy are the ones that own property and/or very successful companies which is really difficult with the astronomical prices in Seoul.
I'm glad I grew up in a environment where practicality and being money-wise is encouraged. My parents always say if you can't afford it in cash, then don't even mind buying it through your credit card, my mom also always tell me, not to practice buying expensive things then starve for 2-3 months, because you've spent all of your money in it.
The only exception are house mortgages because no one has 300000 dollar or more for a house.
Kinda defeats the point of a credit card though.
@@timurdobrianskyi179some do.
There is a proverb in our tamil language " யாருக்கு கடனும் நோயும் இல்லையோ அவனே செல்வந்தன்" which means" one who has no disease or debt is the real wealthy person "
My family told me the same thing. Btw, is that the Tamil language?
Hendy Yuniarto yup...that’s the Tamil language
So true!
There re perfectly healthy beggars
indians are not classy and fancy but they have no debts .
I used to be an ESL teacher for South Korean students and I had a student who told me he maxed out three credit cards to buy Ferragamo clothes, wallets, shoes and a Mac PC, Macbook, etc. because he started working at a company and didn't want to look poor. Whenever he ate out with his coworkers, he would foot the bill and didn't post anything on IG unless it was of his luxury items or an expensive trip he went on. He emphasized how appearances are everything there.
How primitive, and pathetic, just truly a travesty, indoctrination as well as dumbing-down at its finest. Still he had a choice so while the system of so called government, corporations, and indoctrination system are at fault, so is he...
He could have reduced that if he shipped around
Former ESL teacher here too, and I did see this with mostly my middle schoolers who wanted to emulate kpop stars they saw on social media. I was in Ulsan.
Yes, and some of those girls will sell their bodies just to maintain those tastes.
what the fu
I am really surprised about the fact that Korean's debt is almost out of control. Paying too much attention on those material goods without having a personal financial plan in place is really detrimental to the life after retirement. Buying luxury items is not a mistake, but it chiefly depends on how much disposable income you have to make this purchase. It's unwise to just splurge your money on something out of your affordability. In Taiwan, many older people always remind young people to save for the future so as to live through unexpected accidents which is quite right for me. Thank you for filming this docu to allow people to stay more vigilant when it comes to personal finance.
i am so sorry for the shopkeepers who worked so hard, and lost everything
I got lucky and pulled myself out of the credit trap early in life. Now, I’m retired, I only have one credit card with a $5K limit, and I pay it off every month. I’m debt free, and even on a $2,5K pension per month I live a comfortable life. I also have some savings for emergencies. Please think about your financial future folks. When your old and broke, no one will be there for you.
That’s good!! 👏🏾
Some folks work hard all their lives and still can't afford to save for a rainy day; It's enough for them to pay the mortgage and utility bills and put food on the table.
Very sad.
Especially Singaporean
go for debit card instead of credit card.
I don't understand why Korean Gov never discourage credit card usage by forcing the bank to introduce debit card? the biggest culprit here is the Government.
Malaysian Gov already imposed maximum 2 credit cards policy more than 10 years ago.
Good job, and thank you for encouraging others to be wise with credit.
He has all this expensive stuff but his apartment looks like a mess. All the boxes.. Maybe he should sell something
No the boxes, also are expensive, sell what a smart tv worth 5000usd to his neighbour that already have one..
It is like in the Portugal, a building contractor has 5 expensive cars to each member of his family, even thoses which don't have legal age to drive, by the end he lives on street, like presenter told, it will b next and sitting on a time bomb, just an blink of an eye...
These are the simple solutions from Allah the one god who created all the human beings :
O believers, take not doubled and redoubled interest, and fear God so that you may prosper. Fear the fire which has been prepared for those who reject faith, and obey God and the Prophet so that you may receive mercy.”
That which you give as interest to increase the people’s' wealth increases not with God; but that which you give in charity, seeking the goodwill of God, multiplies manifold.” (30: 39)
Those who believe, perform good deeds, establish prayer and pay the zakat, their reward is with their Lord; neither should they have any fear, nor shall they grieve.”
@@mohammedraazi4943 Ameen
@M. Hall there's a Korean show like hoarders called Clean Avengers
I will just throw this out there and hope it’s helpful to someone. When ever you decide to buy something wait for 2 days before buying it. Except food and drink and medicine
I totally agree with this. I was once told a story about a father who, whenever his children wanted something, he would tell them to wait 2 weeks and if they still really wanted it by that time he would get it for them, but if they didn't really need it they would forget about it or admit that they didn't need that "want" anymore. Having a system like this will keep you from spending on things that are only short term wants or fads, things you don't actually need. Waiting 2 weeks or so would be enough time to cool your head and make you think rationally about whether you really needed said thing.
I remember trying to talk my parents out of building a swimming pool in the backyard. I was shocked at the price tag.
I think I was 12.
Watching things like this makes me grateful that I grew up with a frugal mind. I don't know where I got it exactly, but I'm glad for it all the same. I can't imagine going into debt to own a designer anything. Let alone something like a wallet or a handbag. It's insane.
According to my understanding, South Korea has had to come through hard times economically, but it has managed to progress through a lot of hard work. So sad to see this happening, though I'm writing in 2022. I wonder if things have gotten better or worse.
I wonder if that's innate, everyone in my family is a spender and no one thinks about saving, I'm the only one who worries about prices and saving money. No one taught me either, it's just something I've always wanted to do, I also take good care of my belongings so that they will last as long as possible. I've been driving my current car for 20 years and it hasn't broke down once!
same here. Its weird that im finding people like this. My family also like spending but I am somehow frugal
My parents also have spent a lot of money on their pool. But to give them credit the LOVE it and constantly use it. I rarely ever do these days.
@@baronvonjo1929 That's cool. I have nothing against pools, if you love and use them. Good exercise. I think my mother had some sort of ideal about owning a pool...kind of a status symbol. None of us were much into swimming, and my parents weren't either. If we'd really used it...I might have been a little less judgmental of them in paying the hefty price and maintenance costs. Plus the loss of backyard space and the trees that were cut down made me sad. Though it was a pretty pool, and we had a couple of good barbecues around it. As it was, my parents were sort of enslaved to it. Keeping it chlorinated and the endless scooping of leaves and cleaning out the skimmer. All the dead frogs and bugs. Testing the water to get it right, just so it would stay algae free. And when my folks got old...well...one winter I went to visit, and Mom asked me to get the leaves out for her using the pole. But when I looked, there were two drowned possums on the bottom...one in each end. That's a bit off topic, but your comment made me think about that. I came to view that pool as sort of an enemy, and I worried a lot about my parents trying to deal with it. But I'm glad your folks don't regret theirs.
At least it’ll up their selling price, should they ever choose to move!
The two young people talking about their 'luxury' shopping items is a tragic indictment of the modern-day lives of young people . Soulless consumerism. Feeding their never-ending desperation to impress their online followers. Not by doing anything worthy but by buying things. The corporations wish us all to live like this.
44Wynter facts on facts man
True that’s why it’s says that happiness comes from within because you can never be happy with such pitiful educational system !
Very sad...
Everyone who is young today learned what they know from older generations. This is not a "young people" problem this is a ideological problem.
That's a rather combination of many things like family education, religious education, school education, social medias, music, art, ads on the streets or on internet, tv, radios, journals, basically anything can!
Iam a Japanese, my father told me that its better if we look humble but we have a lot of money than we look rich but we fall into debt
Yes, it's called 'class', something which many Koreans lack sadly enough and I'm speaking as a Korean.
I agree soooo much. I'm indian and my family believes in that too!
in India we take pride in having bought cheaper goods and our bargaining skills. Unless u r visibly super rich or Ambani's relative(basically top 1%) if u buy a 3000$ bag your friends wont be jealous/look up to u but mock you and ur parents will shout on you and probably make u return it.
Expensive items are always bought for occasions(wedding, festivals) not for casual use
not when your a compulsive gambler. Its an addiction and people will go into debt and lose everything they ever worked for. Some even commit suicide
@@airtafae4718 I think its totally fine to buy expensive goods ...also you cat exactly bargain in many famous brand shops. But ONLY if you can afford it. If you can easily afford a 3000 bag, 30 000 bad and not get in bebt - go for it. If you end to get into debt for this - no no no...
Korea's household debt is the highest in the world.
- When asked what his dream is, most of them say he is the owner of the building.
- Koreans think of real estate as a means of investment. -
Real estate prices continue to rise and people without real estate become poor.
- There is no economic education at all.
- Economic wealth is the standard of happiness in SK.
I'm glad my mother is not only a god with money, but she is also really good at saving it.
She said: "If you want something big, you need to say no to smaller things." or "You can only save on Food and Clothes."
I stopped buying snacks and fizzy drinks for 3 weeks. I had around 250 euros for a good Chair!
Also a good thing i do: *Money in your purse, that you haven't touched in a week, is going into the piggy bank!*
I prefer clean water and good food.
My skin is acting up the second I'm not being careful.
There is nothing more attractive than a healthy body and clear skin.
So many women around me use expensive products to paint their faces, but their skins look like the surface of the moon.
The same with those plastic nails.
How are those women clean their bodies or homes with those things on their hands!?
I was chatting with a taxi driver on the way to my destination, when she told me that young people who wear expensive stuff, wore their money on their bodies meanwhile their pockets were empty. She told me a story of when she was sending an old average looking lady and her daughter home, the old lady told her to stop in front of a huge house in the city. The driver asked if her house was farther away but she said no and that house was hers. Goes to show that it's better to be humble than to try to keep up with the Joneses.
Doesn’t having a huge home keeping up with the Joneses, too?
@@renpilak6048 Good point. It could be that. But I guess if you are going to spend lots of money on something, at least it's smarter to spend it on a home, because it's a better investment (as long as you can hang onto it!)
I think one thing is that everyone judges you like crazy in South Korea. I’m Singaporean but I look Asian enough to look Korean / Chinese and golly did they treat me different when I wore lazy clothes vs when I dressed up well (they were nice to my American friends)
Anyway, given that, the pressure to dress up well is *real*. It probably even affects how people at your work see you and things like that
Or the lady lied about her house and had him stop there. She might have walked over to her own house from there :') This happens in my country a lot lol.
well eastern europe is going that way too :) i have a 10 year old phone.. and few of my friends have brand new phones yet constantly calling everyone from my phone since they dont have money to pay phone credit.. people life for show only now :) same goes for expencive big cars that stay parked for years infront of my building :) its both funny and sad at the same time :)
I was always taught by my mum: ‘If you don’t have the money for it, don’t buy it. The only thing you can get a loan for is a house or apartment.’ Best advice ever!
If you feel lonley, you can always get a cat
Even an apartment is iffy, my dad would say only for a house within reasonable means.
this is why i keep my credit card limit the same -_-
@Andres These people don't have any idea how to use credit cards lol Look at the threads before, everyone is demonizing credit cards, wtf. You don't get into debt when you have one. What they don't get is that if someone is a bad spender, it doesn't matter whether he has credit card or not, that person will be a bad spender.
In my experience I saved more using credit cards. It makes you aware of your spending habits because everything is in one list at the end of my statement period! That had me reducing money on some areas I don't really need.
@Andres You can buy all those with a debit card lol. Which is pretty much digital on-hand cash.
As a filipino, I'm blessed my mom got me into how credit and debit works as soon as we moved into the U.S. it's something I otherwise probably wouldn't experience if we stayed in the Philippines. Since I turned 10, every time my mom does any transaction whether it's food, car, rent, etc. she tries her best to find time to sit down with me & explain why shes doing the things she does. One of the things my mom always used to say is "don't charge $ on the credit card if you don't have the cash to pay it off right after" & I couldn't thank her enough for putting me on this mindset at such a young age. To any one reading this comment & also play Genshin Impact by any chance, please if you gamble on the game stop it for the sake of your mental health and your future. Just like from the video above, there's lots of young adults that have developed insane gambling addictions in Korea, just imagine other places around the world. I love the game myself but I stopped playing to separate myself from potentially cultivating bad habits. Use money to buy experience, not on digital non-fungible things.
That's exactly what my mum says about credit cards too and it's honestly such a simple thing to understand but so easily dismissed! Never ever buy on impulse or at least sit on it before making a purchase, that helps cut out a lot of unnecessary spending as well.
Very well said.
@Syn If you are a gamer for a long time and have been financially trained and disciplined to be frugal with your money at a young age, it also helps contextualize the danger of Gacha Games and how to utilize their fun factor in as little spending as possible.
As an avid gamer, you have to approach every new game or promo / feature they show like a game reviewer. It means not being afraid of spoilers clauses should it result in saving up money for other investments.
Having savings and investment programs practiced are a must once you are able to work on a first time job.
Hence I can relate due to Filipino culture having witnessed a lot of the good and the bad (mostly bad) side of debt of any kind. Save up
Me too. I used my credit card only for Google Play Game (because how could we pay it if its not by CC), of course on limited amount. I never bought anything on Credit except for my house's mortage years ago, even last year i bought a car in cash.
No1 cares where you’re from, orphan
I've once dated a Korean girl and living together for 3 yrs. This story is 100% correct how young Korean think and even adult as well. It's all about luxury and face.
I’ve lived in Korea and appearance is everything to them. They were shocked that as someone coming from France I didn’t have any Chanel or Lous Vuitton goods.
Ha ha ha.. not everyone from France is rich. Not everyone in France owns a Peugeot.
@@peterlipman8211 Peugeot isn't a luxury brand though
I always wondered why they all seemed so rich.... dorm mate with many in college 2011 and 2012. One was dual citizen US fluent in English and Korean. I knew from him that they all have a suicide problem and all of them were chronic drinkers. I always thought it was the stress, competition for any job is fierce there.
Lol bruhhhh
LOL
I remember as being a poor school kid in Korea
It was unbelievable how many people judged me by what brand of jacket i wore on my school uniform.
Even school uniforms had many different fancy brands and they judged me.
What an experience 😂
Let these empty mind judge you. You will be much wiser later.
Woau 😶 in my country you juts buy anywhere and if it's not perfect no one its gonna tell you nothing, no one cares.
So it's like the kdramas lol
Woah tat totally sucks, sorry u had to go thru tat :/
My generation was during the short period of no school uniform but it wasn't as bad.,
While overspending might be one of the reasons, we can't decline the fact that prices of housing are growing extremely fast and the value of money is decreasing just as fast. Nowadays most people can't afford their housing and never will if they try to 'save for it,' since you still have to pay rent one way or the other. Times are different now and this is actually an issue in many countries where wages can't satisfy the price of living (food, shelter, medical treatments).
I live in Eastern Europe and even here it's very hard to get on your own feet. One of the reasons is that rent sometimes can be higher than the minimum monthly wage, not even talking about other life necessities. For us, it's better to get housing on a mortgage since then the monthly payment is lower but the risk still is higher.
(Since this video is about South Korea, just wanted to point out that the fruits are extremely expensive there. I saw a watermelon being around $20. Not sure if it was for one piece or a certain weight but that's super expensive. Or the low wages for the young workers is another stupid thing. The one they call 'passion pay'. No wonder so many young people still live with their families). What I'm trying to say is that it's not always about people wanting to get the best out of the best but most of the time it's the desperation since they can't afford to survive.
Fascinating..I would love a follow up on this now after Covid., the self employed? I can’t imagine the problems!! And pandemic drags on…I like this in depth information--not just the sanitized or over dramatized news reports.
Thank you for this. Really enjoying your channel! I just found it and watched several.. so we’ll done.
Financial planning should be taught in early school.
They won't let that happen. It would just increase the subjects you have and not remove some unnecessary one's, whic will lead to pressure and mental problems.
@@dellet4000 Correct. The govt have it under control. Sad truth.
religious fascists already defund education, so they can control their populace in the USA, its why they are fighting a "race war" and russia is inciting it against these right wing terrorists of america.. Guess south korea, as they already have religion in place lol..
The down side of education financial education is not taught that’s why know how to value money and the value of your hard earned money
@@dellet4000 this is why they have to find some ways. Yes it can lead to some pressure but in the long run its for the benefit of everyone.
"They leave university with about 10k worth of debt"
My American mind: OOoo that's not bad at all!
Yeah but I wonder how much their average post college wage is to pay that off in a “reasonable” amount of time.
I think post college workers in the US making at least 40-50k a year can pay off their 200k debt in like 1-2 decades with proper financial planning and budgeting
I know!! I’d love “only” 10k!! 😭😭😭
Koreans have the same earnings as the average uk citizen so about 35k. But they dont have free healthcare even though it is way cheaper than the us so that may be smth
@@WithoutException really?10-20years are long!I believe there are some interest rate rolling up the amount at the same time...5-7%?
@@hurbrowns5397 "Free" ? There is no such thing as "Free". Did they not teach you that in school. Do a bit of research & learn how your "Free" education was really funded 🤔
My wife and I spent 2 1/2 years of intense effort to become debt free using the Dave Ramsey snowball method. I had a friend who approached me once we mentioned how excited we were to be debt free. He really seemed to be motivated and interested in becoming debt free.
To get a gauge for his level of motivation, I asked him one question, “Are you willing to cut up your credit cards and never use them again?”
That was pretty much the end of our debt free discussion.
Yes! the 7 baby steps, I’m following them, planning to be debt free before this year ends.
Pride is not the opposite of shame but its source - Uncle Iroh
Ah you are a man of culture
👍🏼👍🏼👍🏼 from a follow last airbender fan 😉
In the Bible it has something similar: Pride goes before the fall and a haughty spirit before destruction.
RIP MAKO
Always upvote for Iroh
Koreans: Feeling proud to wear/ use expensive stuff.
Me as a Filipino: I feel scared on wearing/using expensive stuff. I tend to imagine myself as being kidnapped or lost my expensive stuff.😂
🤣🤣🤣
Yeah, As Indonesian I also feel the same, I even buy cheap phone, because I keep drop them so Im scare expensive phone will ruin easily or gone in a blink of an eye lol
@@archietheredcat haha so true
@@archietheredcat dude that's me Rn 😂 my mom bought me a new phone and i'm so scared losing it out of my sight.
Hahaha same
I prefer to buy cheap clothes rather then expensive one same goes for shoes I only buy expensive clothes or shoes for events then use that dress for 4 or 5 events 😂😂😉
This video reminded me of watching Vice documentaries in my high school history class, brought back good memories, thank you for making this CNA Insider!
Very interesting! All of your videos
Congrats!!!
Till date I do not use a credit card. My parents have always believed...cut your coat according to the cloth and I stick by it. A simple life is always better than living a life of borrowed luxury
Tanaya Roy Choudhuri A proven maxim, from time to time... :)
Then you won't know what you have missed.
@@salimsg there's a new term that's being widely used nowadays called FOMO...fear of missing out. I guess it's all one's perspective. I would happily miss out on a Rolex watch than miss out on my time with my family...simpler things in life are free but valuable
I am using credit card but I always pay my bills in full thou
@@tanayaroychoudhuri503 No venture no gain. Air is also free. Try living on it.
My mom loves to people watch here in the U.S. She's lived here for many years now and says how no one here is dressed exactly the same and how everyone has their own sense of style. She said in Korea, if something is "in", that's what everyone is wearing at that time. I think there is probably so much pressure to do that....
When I was a kid, my Korean mom in Canada told me she liked to watch all the different kinds of people come in through the mall doors.
If my sister wears the same colour or similar style i would literally not leave the house and go back and change 🤣🤣 I'm from Europe tho. Here we have different pressures. For example not being seen in the same dress twice when u go out. Just as expensive as keeping up with latest trends :(
This documentary really Made me apreciate my life
Insightful
My father earns about 600k every year in South Korea, but he still wears his 3 years old jacket and a jean with nike tennis shoes. He always tells me that all these young people spending bank money on luxury items are stupid and pathetic.
You make him proud by remembering and acting on his word of wisdom. So easy to forget.
600k what? Dollas?
600k in dollars is insane but 600k in korean wan is about 500$ maybe its 600k÷1200
@@iwshum8740 It's 600k in dollars, so I guess it is insane.
I'm trying to reach his status in yearly income. He sounds like a wise man also.
To me, The saddest thing is to see someone who looks rich but is very poor. I would much rather see someone who looks like a pauper but is actually very rich.
" I would much rather see someone who looks like a pauper but is actually very rich." So a Silicon Valley executive.
@KPop Rocks !
South Korea is a lapdog of the US while Singapore is not! As the containment measures used during the coronavirus outbreaks, Koreas learned them from China! For example: the lockdown, aggressively testing...etc.
Why would you be sad, I'd just laugh. When I see a person living on the street I feel sad.
@@zhangqian516 please Korea didn't learn anything from China, China is still suffering, more likely learnt it from Taiwan. And Singapore was and is bulit by exploited foreign labourers.
One Inch Punch I would be sad because that person is wasting resources on a facade. There’s no substance to their “wealth.” In the end, they will likely struggle with debt and/or poverty.
Why doesn’t the Government simply outlaw loan sharking - especially when it’s aimed at young people. Make it a jail-able offence.
Excellent documentary, I didn’t even know this was a problem
The family whose landlord quadrupled their rent without ample notice is heartless. He didn’t even want to speak to the couple about it and even resulted to threats. How can that be legal? He should also be charged.
There's always more to the story.
Their NEW landlord. They had to move out if they didn't agree to pay. They refused to pay and they refused to leave, so they were forcibly evicted. Plus the husband is in prison for assaulting the landlord with a hammer. They could have just moved to a lower rent place, but they didn't.
Where I live it is illegal for the landlord to raise the price of the rent before signing a new contract with the people who rent the place. I thought it was common sense.
@@gtw4546 You see there is a housing crisis there, it is extremely hard to find housing much like hongkong so all prices of apartments and houses are GODDAMN HIGH.
So what you're suggesting is very unrealistic and mindless. I understand them, and house prices shouldn't be quadrupled like that. Even in my country that is prohibited irrespective if the house is bought by another landlord.
@@naimas8120 Rewatch that part of the video - it wasn't housing, it was their shop. And it was "after a TWO YEAR deadline"
One thing I noticed about Koreans early on, is they play the "Keeping Up with the Jones's" at an expert level. I lived in Korea for a time and have many Korean friends. They NEED the Mercedes, the Louis Vuitton Bags, Chanel,etc... They can't seem to buy normal everyday things. IT HAS TO BE THE BEST....or the Most Expensive.
People like that are materialistic af and will most likely die alone
Those are the wrong type of koreans...I'm korean and that is disgraceful to me.
Yes, and they think expensive means better quality. No, it doesn't.
@A. L. Buddy I have studied and worked in Korea for 8 years now. I think it's all about culture other than stereotype. Korean people are so much worried about society, about what others will think of them in appearance, where they work, lifestyle, apartments etc. I have friends who have bought expensive designer cloths at uni even when they got no source of income but a credit card.
I have seen co-workers get car loans for BMWs just cuz their friend or neighbour has one!
I have seen a boss who talks about his competitor living in a luxury apartment so he plans to live in a more expensive one too as well on mortgage, a professor who just paid off his mortgage at 68 after retirement!
Some people won't even tell you where they went to college just cuz it's a low rated uni!
Having the highest rate of suicide rates says it all!
my first korean word I learnt was "oh btw this is expensive" literally everyone will say that when you complete about a thing they have!
Of course not everyone but I would say 90% of Koreans live that kind of life
Yes, it's called living a double life as though you're rich.
This quote comes to mind👉We buy things we don’t need with money we don’t have to impress people we don’t like or even know.. happy my parents taught us never to buy anything unless you have the cash.. key is to SAVE for what you really want/need..served us well throughout life..
Thanks for your high quality video.
I am 79 years Fijian, and believe in saving rather than loan!
It is simple.
No bag is worth 3000$! It is the biggest scam in the world😂 I rock 20$ bags and I am happy.
that's nice of you rocking simple things. have only 2 bags, one formal which was a gift to me the other a sling, bought it for $6 and been using it for 4 yrs now. went to singapore & johor, malaysia w/ my family on our own savings, using that bag and wearing a $2.5 flat shoes. I never really cared, how much I was wearing, as long as the money I spent is not on loan. you can live life happily by not splurging on material things. for us seeing the world and the places in our own country, really makes us happy. but we do it by saving, not borrowing money. if the savings not enough, then we hold the desire to travel for another year.
🤣🤣I feel rich when I buy a 20$ bag as a university student 🤣
Those are the hottest word you can say to a guy. Lol thats not even a joke
@@teteya.n ikrr
I agree! A pretty and cheap bag is the best deal ever lol
I don't think this is the only Korea's issue. It's a world wide problem
Yes a worldwide problem created by rich to make them more rich and poor people buy into it.
But I think South Korea and Japan gap between the rich and poor is so wide, that essentially it puts the poor in a position to feel like they need to catch up. Not to mention the society places so much emphasis on brand names and beauty, that everyone is just racking up debt fast. It’s no doubt that everywhere is dealing with debt but I feel like South Korea especially focuses on material goods and even their job applications asks about their parents jobs. Girls in middle school are literally getting plastic surgery to improve their job outcome. I think that itself says a lot.,.
Oh it is household debt? Then S Korea isn't alone. Housing in HK and Singapore is expensive too.
Yup. Just look at Australia
That is not true. In europe household debt compared to GDP is at an all time low. In 2010 it was about 54 percent and now it is about 49 percent. But most people over here don't own or use credit cards. In general taking on debt is considered very bad and most people don't do that. They just spent what they earn and also put some money aside into saving accounts.
He needs to start selling some of that stuff he bought so he can clear debts. Also it is possible to tell a card company that you want you credit limit to be a certain amount and not to carry it up. Not sure if it works with banks too but worth checking out.
Lessons from this documentary!
1. Never own a credit card.
2. Don't buy expensive stuff to make yourself look rich.
3. Don't have friends to support your expensive spending habits.
4. Don't lease a commercial space to start a business without a solid long term contract with the lesser.
5. Never spend more than your means.
Last but not the least.
Don't care what people think about you, the only people that matters in your life is your family.
Credit card is like a knife. If you know what to do with it, you can save a lot of money. For example, petrol credit card is indeed a necessity for me. You can save a lot of money using petrol credit card. Paying cash for petrol is a bit of waste for me since no rebate. I do know most Singaporean Petrol Credit Cards do offered more than 20% petrol discounts. Malaysian petrol credit cards gave maximum 10% rebate, no petrol discount.
Yup.. for stupid people. Credit cards are better ways to accumulate points while withdrawing cash will cost you a fees.
I agree with some of your points, except for the first one. I think it's ok to have a credit card, as long as you know your limits. Credit card have their its own benefits compared to debit card. But yeah, better avoid credit card if you're not confident in yourself to use one (myself included).
In my early 20s, I racked up 38 thousand dollars debt in less than A Year. Mostly because of my heavy drug addiction.
Now in my 30s, I work well paying job, still working over8 Years now, and now have thousands $$$ saved up in savings. If it weren't for my addiction, I wouldn't the person I am now. Addiction has taught me a lot about self control. Been clean for 15 years now
Good for you 🤗
👍🏻
nice may GOD bless you
keep at it bro
Wow man, respect 👍🏻
"Most young people leave college with an average of $10,000 USD in college loans"
Me, an American "Must be nice."
Shaye M lol that amount of money is a lot for Asian countries.
@@oliviahanlim8089 Well, yeah, because it's also perfectly normal to leave school with no debt. My husband had $160,000 in student debt and I had $40,000. On top of that, affordable housing is much more scarce than in Korea and medical care here is much less affordable as well.
I lived in Korea for years and their main issues appear to be the need to keep up with trends and luxury items, and an over educated population leading to low employment.
Shaye M you have a point. They could have controlled their spending and avoided debt. Thanks for the info!
@@oliviahanlim8089 it is definitely an issue. Especially when they are set up for success in a lot of ways. They have access to affordable (small, but affordable even a studio in a rural part of the US is over $1000/month) housing, affordable medical care, affordable college, the ability to live with their parents until marriage (most americans are expected to move our between 18 and 21).
The issue is so many people want to look like they have a luxurious life, even when they cannot afford it. My friends have debt, but still buy luxury fashion items, go on trips several times per year, fly first class so they can post it on Instagram. I used to think they were just well off, but it's all about portraying an image.
glad in my country no student loan, you can't get loan if no fixed income..
Luckily me and my family never use credit card like ever. The only time we have debt is when we have to buy real estate, but it's a affordable debt and even the worst case scenario happen, it won't bankrupt us. Now we got like 3 houses in the economic hub city in Asia while my friends have none.
I remember in my sociology class, SK was stated as a hedonistic country. I wasn't so sure about that, until recent years I read the news and saw documentary like this. it's their society that drives them into this life style
Married to a Korean and this is so true on so many levels. Korean are big spenders on fashion, appearances and food.
why did you marry him/her ?
jyc313 lol
Food? We all need to eat.
$65 sushi the other day just for herself
@@foxkenji I think he means expensive foods.
South koreans: buying 3000 dollars bags
Me: feeling bad for buying the 35 euros sneakers that I have been wearing for 3 years
I'd rather spend within my means than not...
@@UnseenSpirit agreed
Me too. I live by the principle if my clothes and sandals are still in working condition so there is no need to buy more.
I was feeling so iffy about buying a $40 pair of sneakers, though they ended up being very comfortable (thank you Sketchers)
I bought $110 Nikes and the bottoms fell of in the dryer. That's when I said "never again"
Never borrow money to buy things that you cannot afford, as simple as that.
This investigation does not ask:
- how to ban loan shark ?
- how to increase credit union ?
- how to financially educate the young people ?
"When I carry this bag I feel proud"
Proud of what? DEBT? Really?
he has rich parents though, he’s not in debt yet ig
@@emma-nv4ox I am reffering to the 'she'. She is taking debt as she stated in the video herself
@@neetikakumawat1238 she is working two jobs to maintain her lifestyle. She is not yet in debt
Now South Koreans can live in the US properly.
It's an utterly idiotic mindset
Financial literacy should be taught in school at an early age. People get into bad debt and not debt that generates money. Bad debt that pays other people and not yourself and the lack of knowledge of understanding how to leverage other's people money to your own. All bad debt stems from financial ignorance, passed down poverty, and the short sighted-ness of keeping up with the Jones, Kims, Nguyens, Chen, Gonzalez...etc.
The thing is with the current situation, that even “good debt” which generates money and revenue is potentially bad and can be a case for bankruptcy. But in general you are right, 99% of people and everydays person debt is bad debt in the first place...
but thats exactly what the government wants, or at least the corrupt people in the government. they dont want people to be financially literate. thats why its not taught in schools. its so the rich can stay rich and the poor stay poor. thats capitalism.
Gosh I always wondered why this wasn't the route schools went into instead of geometry proofs
@@BalazsNyitray right, but with common sense and foresight you can use the money other people have generated for you to save up for emergency funds. Knowing to how to make good money is secondary to knowing how to save good money. Many rich people don't know how to do that so they live like poor people; day by day, paycheck by paycheck, it's still a poor person's mentality with a bigger pocket.
@@towngirl1665 I think that's over simplifying the problem. Most of these government officials are taught the conventional way about the value of education and less about finance if at all. And many of them have money in the stock market and allow corporations to control them by the balls because of the money they've invested in each other. It'll take a while to reform old ideas and laws in government and society, but collectively as regular citizens with the help of technology we can help educate each other on financial matters and take our power back from government, Wall Street, and Banks. The biggest hurdle is not creating content that can educate the masses about finances but changing people's mindset about money. These thoughts are passed down by family and validated by society. For example, if you can help me fill in the blank: "A penny save is a _____"?
I only learned how credit card/loans work because I ended up working for a call centre for a bank. Good stuff.
The power of instant gratification.
Young Korean people would have a mental breakdown looking at my closet. I have clothes I bought 10 years ago which I still wear because I genuinely like them.
Haha I can relate..😅😅😁
I have clothes with holes of torn fabric and they are my favorite. Coz I can wear them and walk the street at night with no worry of being robbed.
@@abelsoo5465 don't forget they are sooo comfortable
i think that guy has depression and the shopping initially gave him a good feeling but now hes stuck with items he doesnt need and debts he cant pay
@KPop Rocks ! so to justify your "better" siutatuon you use the situatuon of Singapore? Ah come on, just resolve your problems and that's it, don't compare R.O.K. to Singapore to look better
@cesar cenro i know what you're trying to say is rude, but you do have a point
@KPop Rocks ! the video wasn't even about national debts, it was about household debts
Fitrian Hidayat ^^ what you said.
I've never had a credit card, or used one of those small loan companies, even when I was desperately poor and homeless, and had no money for food. I knew it would only make matters worse for me in the long run.
Would be really interesting to review the debt in South Korea after 2 years with Covid.
40% interest for 2 months. That's nasty
Ikr, how can he even agree to that i don't understand. Buying a 9700 USD machine to make viral ice cream and can't use it after 1 month. What does he even mean by that? Was it broken, did the trend died, can't it be used for different type of ice cream etc. Did he even think at all?
Here in france its just 20%
This documentary is totally a perspective changer on SKorea for me. Many in my country, especially young girls, young women and those at their 30s are crazy about S. Korea, you know, because of Kpop and kdramas. They all see S. Korea as a developed country, one of the highest-ranked economy in Asia, with all those fancy lifestyle of Korean "idols." Even me who's not a fan, thought the same. The glamorous packaging of Korean ent. Industry has been serving as perfect cover for what's rotten inside.
it's just a documentary on certain people, does not represent the whole nation. i mean if i see a docu on drugs in america, it does not mean all americans are druggies.... you should go visit korea yourself to get an opinion instead of from 1 youtube video. korea is hands down one of my favorite countries to visit.
@@dance4ever940 their just saying that everything isn't as perfect as it seems which is a fair statement. As a tourist, you only see the best of a country.
@@dance4ever940 Seems like you don't get it. Which of my comment insinuating that I thought all Koreans are broke which prompted you to make the analogy of american druggies? It merely says that it turns out SKorea isn't as perfect as it look. There are people having financial problems, in bad debts, losing their jobs and struggling to get one, just like average people in any other developing countries. You won't get to learn of it as a tourist, as you'll only see the nice, beautiful tourist destinations. Also, there may be only certain people in this docu, as a short docu has limitation to portray many people, but they are samples of many others who suffer the same thing. As the title says, "SK GROWING household' debts." If you watch the docu carefully, there's also graph showing it, means there are many households who suffer the same thing.
@@dance4ever940 you still don't get it do you. Let me explain:
1. In my original comment, I said it's totally a perspective changer for me as I never thought many Koreans hv financial problems. All this time I thought they're all wealthy, not necessary crazy riches of course, but wealthy enough, living good lives.
2. Rotten inside, doesn't mean the whole country is rotten. There are things apparently rotten in the country: the financial systems that brought people into huge, bad debts, the economy that is based mainly on consumption, the mindset of average koreans (mostly young ones) of fancying branded goods as their social identity to the point they felt alienated when they don't submitted and force them to exceed their credit limit, force them to live beyond their means.
3. I'm totally aware that Korea is a developed country (see my original comment: one of highest-ranked econ in Asia). What I mean is, turns out they have the problem like many of the people in developing countries, not that I said korea is a developing one, get it?
4. I'm totally aware that people in many other countries also have the same problems, even in developed ones like the UK and US. You dont need to patronize me on it. Just that for Korea, as I said, I had no idea that behind that perfect portrayings of koreans lives in K-ent, there are average people who in real life suffer fin difficulties.
5. That Korea is one of the countries you love to visit the most doesn't hv anything to do with what was depicted in the docu. There's no way you'll learn about the problems as a tourist, who only spent days in the country. Even if you lived for years in the country, there's no guarantee you'd know it. It's something that doesn't come up in everyday news I think, mostly if what you watch and read is only abt K-ent. The journalists that made this docu had to dig deep into the society and gain trust from them to be able to come up with the story, something any tourist can't do.
6. All of the above are my personal opinions (perspective changer FOR ME), I stand by them, I dont even care if you disagree. But I need to explain mine to you since you seem to fail to get them. Also, why do you seem to feel offended by mine, are you k-ent fan? As I'm aware k-pop/k-drama fans most are fanatic ones, who'd feel offended and take it as their personal matter whenever there are ppl criticize their "idols" and will defend them and the country to the bones.
All said, I'm done. Not going to waste more of my time debating with total stranger on YT. I'm muting this.
I have an issue talking “especially “ about girls. Obviously men are especially vulnerable in buying their gadgets
Many people venture into crypto to be wealthy, meanwhile I just want to be debt free.
Your business will make you rich but your investment will make you wealthy. We all deserve to be rich and have financial freedom. I pray everyone reading this becomes extremely successful.
@Amanda Sheridan You're right, Fear is one of the factors that hinder most persons to invest into crypto, most persons say ignorance..
Now is the best time to purchase and invest in bitcoin, stop procastinating
I'm enjoying working under a platform that brings good returns in my life and I've been making my weekly returns without stress all in crypto
When you invest in crypto you are buying days you don't need to work
Eye opening and heartbreaking
Feel like in the west we view japan and South Korea with rose tinted glasses and only see the mainy positives in the countries yet neglect the negatives. No body or nation is perfect I suppose.
Yes but some countries are better than others
@@m.zahiruddinmohhar6492 obviously.
Feel like in the west we don't really differentiate between them even tho they are pretty different
Only if you are a weeb or a koreaboo.
Social Media is making you delusional. Obviously they're not perfect. Just like make up, when you wipe it off you know that truth but once you've accepting it little by little you learn that hiding something is not bad. And it's make you human. No one is perfect, You'll learn something new
You shouldn't try to live a champagne life on a beer budget.
So in that case im in mineral water financial
That's a good quote, i like it
@@pandupras47 You can afford minerals!?
Rockin that Coca Cola life
I would like to see a documentary on Singapore debt !
C V was a great exercise in funneling the wealth to the top.
Whenever I want to buy something, I always look at my account balance. If I still want to buy it, I re-watch this video as a double-take. 😑
Good motivation!
You can buy yourself once in a while just don't over do it that's the lesson
@@javierjaime9386 no worries mate... I still treat myself from time to time. Its just that I limit it based on my budget. ☺️
Good idea.. I'll do the same 😆
South Koreans taking the whole "keeping up with the jones'" to a new level.
They need to stop buying stuff. Some people spend whole paycheck buying clothes. Wake up people. If you don't have money. Don't buy things.
Like US citizens....
@@allgoo1990 china too, especially the millennium with no concept of hard cash. all electronic payment. They wont know how much their owed.
when you don't earn much, and your friends all showing their prized possession, you have no choice but not to be left out. the young Korean society is all about looking good for other people.
I spend my whole check buying weed though 🤔
@@linustw phook that
I can only agree on the two main issues mentioned: insanely inflated real estate prices (driven by loan!) and carelessly operating small business owners.
As for the business owners, I always wonder why so many open the 1001st coffee shop or chicken restaurant in already way oversaturated areas. Seriously, what kind of result do people expect from that? The turnover rate from cafes and restaurants in general is mindblowing and the resulting debt probably as well.
Pretty much none of those South Korean SME owners have any real business plan which is mistake number one. If you don't know what you want to try and achieve and most importantly don't have a plan on how to realistically reach said goal then your venture is likely doomed from the start. Anyone with some business smarts would probably have been able to gather that opening the 1001th coffee shop or whatever is not gonna work out. Which brings us to mistake number two. Since most of those people have no clue on how to be proper business owners they just "follow the hype" which in this case means opening a coffee shop, chicken restaraunt,... and same as with many things by the time it is a "hype" and people want in the best opportunities tend to have already come and gone and trying to get in is just shooting in your own foot.
Often in Belgium if you want a loan you HAVE to submit a business plan that gives the bank an idea on how you plan to spend the money (so you know they can see that you have an idea of what you're talking about and how likely you are to succeed). Dunno how it goes with South Korean banks, but it really doesn't matter when it's so easy for people to get unofficial loans. Something tells me the same thing happens with South Korean banks and the banks knowing the market is oversaturated aren't impressed with the business plan and deny the loan.
As for your question in regards of why restaurants and such are so popular. It's honestly quite simple. It's "easy" (or so people think) to operate a bar or restaurant. A lot of people think all that comes with a bar is knowing how to serve a beer or make a meal. This is true BTW even in unsaturated areas which is why the catering industry is usually the sector with the most bankruptcies. It's a relatively easy industry to get started in which by defaults means a lot of unqualified people get into it thinking it will be easy and get burned as a result. BTW I am not judging because as mentioned in the video a lot of people become self-employed because getting a regular job was too difficult in the economic climate of South Korea, but it does not take away from the fact that a good cook does not necesarily make a good restaurant owner or a good barkeep does not by default make a good bar owner.
All in all thought I do have a bit of a hard time feeling sorry for people in this video with I think the only exception being the man who got thrown in jail and his wife as it sounded like they got screwed over by South Korean law not really protecting renters by enabling a new landlord to instantly quadruple the rent and perhaps the guy that got fired due to the medical condition as well even though he went on a shopping spree with his credit cards so I dunno. I am going to put him on a maybe.
Sorry for the long reply.
that guy bought a wallet from a brand i never heard of to house the credit card that was used to purchase it. Repeatedly going in and out of debt as it drastically stretches one's ego and credit like an elastic band that eventually wears out and snaps the person back to reality only after it breaks. It's surreal and sinister.
When their own country is encouraging them to spend more via debt, to “save the economy “ it just perpetuates the same cycle of living beyond their means and maintaining appearances.
Exactly. Its the f%$#ing system, the corrupt government, the greedy oligarchy, heartless foreign investors, all of these the real cause of that economic nightmare... people commenting on s.k. people... psh... o better people
I also think the same. People rely on loan sharks bc it's unregulated. It's the main problem but why is the govt not stepping in? They are doing business illegally by charging way beyond the normal interest rates. It makes you wonder who are these people behind the loan sharks? Why are there no interventions from the govt? How powerful are them?
@@Mike-rt1vh This is really sad. The Chinese people, and particular east asians have been known historically for being very good savers and/or very careful in their spending i.e. you would never even spend more than 40% of what you earn if you can. What happened in the past 20-30 years?
@@YourAnpanman This is really sad. The Chinese people, and particular east asians have been known historically for being very good savers and/or very careful in their spending i.e. you would never even spend more than 40% of what you earn if you can. What happened in the past 20-30 years?
So... It's basically like a middle class American lifestyle?
There is a saying: You can either look rich or be Rich, one is to impress others and the other is to impress yourself. Be vigilant and responsible, and make sure you are financially literate. The soulless corps thrive on the ignorance of the people when it comes to financial awareness. There are reasons why financial topics aren't really covered in schools, they want you to put yourselves in debt and become a wage slave. Depending on the environment and how susceptible you are it also makes you have the urge to spend all of your money (and savings) to impress others; especially in this day an age of social media.
I like the way you think, curious where this comes from?
Its not the individuals fault. The quote you should learn is "It's capitalism stupid". If you were really intelligent, you would realize that there is absolutely no reason to follow this unfounded, delusional, anti-scientific, destructive, absurd economic religion the first place, but to fight it. Like all batshit crazy religions do, the religion of capitalism is coming to an end too folks! Either man gets smart enough to figure out that the planet is being raped by capitalists at the expense of our survival, OR if left long enough, mother nature will teach us what reality is, by bringing on a number of extinction events, to cleanse us of this mental disease. COVID19 is just a preliminary warning, another one of many clues we have already been given by nature. Want to know the end game? In the war between capitalism and reality, reality wins.
"It is easier to imagine an end to the world than an end to capitalism"" --Mark Fisher
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@@nevadataylor Im not interested in your dogma. If you disagree with capitalism that is your belief, but I do not share your opinion. So enough of the bullshit about "If you were really intelligent..." garbage; its condescending and shows projection. No matter what system, the human element and condition will always have people becoming predatory and taking advantage of others. This is about financial awareness and telling people about the best way to get through their situation. I do not blame people for their situation they were put in, but I do hold them accountable for their actions.
@@kenlee5613 I cannot remember per say, but it stuck with me. The rest of my comment was my understanding of how people fall for those traps. Then I just had to look at companies like Apple for example that felt close to home. Maybe it was Dave Ramsey?
@@MikeDoesRandomThings Sorry to burst your intellectual bubble there Mike, but it's NOT my opinion. There is a problem with your delusion. Just like with other religions, Science proves you wrong too! :)
Plastic oceans, screwing with the DNA of our food sources, pesticides poisoning the land, water aquifers being drained, yada yada yada repeat, repeat, repeat. You know, crapitalism is the best system in 1 respect; it's the best system ever to quickly churn our precious resources into landfill CRAP!
So to clarify, it's actually you being dogmatic, and not me.
Besides, even at the fundamental level, I can't understand why anyone would want to be a capitalist minion?! Could you please tell me why you openly choose an economic system where you give the method of production to a higher class of humans, for you to serve them? I keep asking this question, but the dipshit capitalists never seem to have an answer. The only answer I can come up with is brainwashing, and the wish to remain willfully ignorant, not unlike other religions mind you.
Moreover, get your head out of your ass! There is no way you can say that capitalism is intelligent! BAHhahahahhahahha Even monkey's know that capitalism is a bullshit system, why can't you figure it out? :O
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We have had family living with us to consolidate costs and reduce over-head by spreading it among four earners. So far, it’s been great, we can pay down/off all our debts, and finally get to the point where we can save money. Credit is a trap, buying on credit should be avoided at all costs.
I don't blame the users of cards for this crises. I blame the predatory banks and businesses for taking advantage of people, full well knowing that they can't pay it back.
This helps me understand the family in the movie Parasite. They mention that they started a family business that failed.
The movie Parasite is exactly like how a parasite acts!
Once a living organism infects and area, that parasite multiplies and then eventually takes over the whole area.
Ben Oody it was the guy in the basement right ?? He was hiding from his debt collectors.
@@dumblewhoree yes
@@xin0 No thats what viruses do. A parasite feeds from their host without giving any benefits back, like a blood sucking leech. That is the opposite of a symbiotic relationship, like bacteria synthesize vitamine K by breaking down food in the gut. It is that parasitic greed for money and profit. The wealthy suck money from their people without investing anything back into society. Eventually it leads to the poor getting poorer and a society in debt.
@@opstruun4699 Well said!
Korean culture is truly a materialistic hell hole. The emphasis on short term happiness blinds an individual of his/her sense of responsibility. Its youth really are lost and need guidance.
I dont understand why people in korea are so into materialistic stuff.We just need some money for food and entertainment.
Not culture btw its just today's business trends which is been followed... it'll fade when things fall tho time' worried about future of korea
yeah I notice Asians make up the majority of people buying luxury brands at malls (both South and East Asians). I respect their desire to look good but you don't need big brand names to do that
Kpop culture probably lead to the debt issue. People spending money on luxuries they can’t afford to look more like their idols.
Agree
Keep it going Kwan. You can do it.🇩🇰🙋🏻♂️🐶
The ironic thing is that credit cards actually raise the price of commodities by increasing demand. If there were no credit cards, cost of goods would be a lot cheaper.
The problem with today’s world is almost everyone is fake. Everyone wants to show they are living a better life while they are not to others!
“Look at this unethically sourced bag” 💼
“Isn’t this shirt that will go out of fashion in 3 months so cute” ✨
“I have zero originality” 💯
Africans are the only people who are real
Most of them are on Instagram and Facebook.
@@mitchkabanga2950 What? What does that have to do with the video???
@Punk Rotten so true
"rely on his wealthy parents for his indulgences." His parents raised him right.
I was impressed at first since he said that he saved up for that tiny card holder, but then he said that he borrowed money to buy some limited edition shoes, and then the narrator even added that he has rich parents. o_o
I suprise also because ussually in East Asian people tradition (China, Japan, and Korea) parents are very strict and will always teach their kids to be dicipline and work hard regardless the economy codition even the rich families never give their kids that much money and stuff and teach them a lesson. Guest what , Korea have changed.
@@fredylim7691 koreans dont know healthy balance
either do not raise child at all so he become spoiled brat
or they raise him so strictly that he hates them
no Heather balance
12:00 I lost it how she just said it. 😂😂
So, in conclusion, every so called "victim" in this video made dumb decisions, forced their relatives into hardship and now somehow everyone else is to blame. What a nation.