The combined debt of the government and households in the country has surpassed three-thousand trillion won for the first time.

According to data from the Finance Ministry and the Bank of Korea on Sunday, the country's combined national debt and household debt reached a record three-thousand-42 trillion won at the end of the second quarter.

The figure amounts to approximately 127 percent of last year's nominal gross domestic product (GDP) of two-thousand-401 trillion won.

The combined debt increased by 44 trillion won in the second quarter alone, more than double the growth of 20 trillion won in the first quarter. It marks the largest gain since the third quarter of 2021, at the height of the COVID-19 pandemic.

The surge is attributed to lower tax revenue, increased bond issuance and aggressive borrowing from households for real estate investments.