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S. Korea's Household Debt Grows at World's Second Fastest Pace

Write: 2019-03-17 13:01:24Update: 2019-03-17 14:24:52

S. Korea's Household Debt Grows at World's Second Fastest Pace

Photo : YONHAP News

New data finds South Korea's household debt is increasing at an alarming rate in terms of its growth pace.

According to data compiled by the Bank for International Settlements on Sunday, South Korea’s household debt was equal to 96-point-nine percent of its gross domestic product (GDP) at the end of the third quarter last year.

The debt-to-GDP ratio rose by point-nine percentage points from the previous quarter, marking the largest gain among 43 major economies, after China which posted a growth of one-point-two percentage points.

Also, the country’s household debt service ratio, which measures the share of household income used to service debt and is considered as an indicator for risky household loans, hit a record high 12-point-five percent as of the end of the third quarter last year.

The country's ratio grew by half of a percentage point from a year ago to post the largest gain among countries whose data were compiled by the BIS.

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