The government is aware of the rapid increase in household debt, according to Finance Minister Choi Sang-mok, and is trying to produce measures and engage with the market to decrease the rate of increase and guarantee appropriate liquidity management.

The minister made the remarks on Sunday, appearing on a KBS program, saying that household debt is increasing rather quickly with a rise in mortgage loans among those trying to buy a house.

However, according to Minister Choi, the ratio of household debt to gross domestic product has dropped and has been controlled steadily since the Yoon Suk Yeol government took office.

He stressed that from a macroeconomic perspective, there are no major problems and that the amount of household debt itself has been managed well over the past two years. 

The minister said that nations around the world significantly increased liquidity during the COVID-19 pandemic, with a two-fold increase in household debt in South Korea. Choi said that the government is making efforts to reduce it slowly. 

Regarding an enhanced stress debt service ratio intended to limit loans, the minister stated that while some borrowers may experience a slight reduction in the amount of loans they are able to take out, the goal of the measure is not to restrict loans to those who truly need them, but rather to stabilize the overall increase in household loans.