The country’s household debt to gross domestic product(GDP) ratio rose to an all-time high of over 103 percent last year.

In its monetary credit policy report submitted to the National Assembly Thursday, the Bank of Korea(BOK) said the upward trend in household borrowing is likely to continue given the relaxed financial climate and demand for housing and long-term leasing.

The household debt to GDP ratio has been on the rise since 2019 spurred by increasing housing costs and household loans. It grew from 91-point-eight percent in 2018 to 103-point-eight percent as of the end of 2020.

This is the highest it's ever been since figures started to be compiled in the fourth quarter of 1962.

The BOK attributed the increase to the recent sharp rise in housing prices, which is in stark contrast to income and basic spending.