South Korea logged the third-highest household debt-to-gross domestic product(GDP) ratio among the world's major economies last year.

The Bank of Korea(BOK) said on Monday that data from the Bank for International Settlements showed that the nation's debt-to-GDP as of the fourth quarter last year stood at 105 percent, third only to Switzerland at 128-point-three percent and Australia at 111-point-eight percent.

The BOK said while the ratio of most other major economies dropped or remained stable following the global financial crisis, South Korea's continuously rose despite preventive policy efforts.

The country’s ratio gradually increased from 14th-highest out of 43 economies in 2010 to the eighth-highest in 2016 and in 2017 before hitting the seventh spot from 2018 to 2020.

While the central bank forecast a limited risk of the debt ratio leading to a financial instability, it warned that an excessive debt expansion may cause negative external effects, such as restrictions of long-term growth and increased asset inequality.