The basic objectives of this study are : 1) to analyze the current state of farm households debt in islandsl area, and 2) to make a few suggestion on. how this problem of farm households debt could be alleviated. In order to achieve these objectives, raw data were collected from 138 farming households, which were selected based on 32 farming households in Sinan-Gun Amtae Island in 2002, 42 farming households in Younggwang-Gun Anma Island in 2002, 64 farming households in Sinan-Gun Imja Island in 2004.
An average amount of farm households debt was 30,832 thousand won by the constant price. Supply credit was made by institutional credit market system as high as 98.9 percent of total amount and made by non-institutional credit market system as 1.1 percent.
The credit structure of security was 72.4 percent on personal security and 27.6 percent on real security. The loan period was centered on short-term loan : 38.2 percent of those was short-term loan, 40.7 percent of those was long-term loan, 21.1 percent of those was mid-term loan. Borrowing on purpose was composed of 24.0 percent on capital expenditure, 45.3 percent on operating expenditure, and 30.7 percent on farm family expenditure.