Korea’s Total Savings Dwindling

According to data by the Ministry of Strategy and Finance and Statistics Korea, Korea’s savings rate fell to its lowest level in 26 years due to people’s stagnant incomes and less interest in savings.

From Yonhap News:

The country's total savings rate, or total savings divided by total disposable income, stood at 30 percent last year, the lowest since the 28.9 percent recorded in 1983, according to data by the Ministry of Strategy and Finance and Statistics Korea.

In the wake of the 1997-98 foreign exchange crisis, South Korea's total savings rate dropped as low as 30.5 percent in 2002, but it rose to 31.9 percent and peaked at 43 percent in 2004. Since then, it has been on the decline.

South Korea's investment rate, or total investment money divided by total disposable income, came to 25.8 percent in 2009, the lowest since the 25.3 percent recorded in 1998, according to the government agencies.

http://english.yonhapnews.co.kr/business/2010/05/23/26/0503000000AEN20100523000200320F.HTML