Household Debt Grows More Slowly This Year
Household debt is expected to grow just over seven percent this year, the first time in three years that it has increased at a rate of less than 10 percent.
The main reason is the government's efforts to curb real estate speculation and loan sharks.
Household debt growth is expected at 7.5 percent this year. It grew 6.5 percent in 2014, 10.9 percent in 2015 and 11.6 percent last year. The figure includes loans people take out from banks as well as credit card debt.
As of the end of last year, total household debt stood at a staggering W1,343 trillion (US$1=W1,118). In the first 10 months of this year it soared by another W74.5 trillion, but that was W24.3 trillion less than in the same period last year.
At this rate, the growth for the whole year is expected to be around 7.5 percent, even considering household debt typically grows more in November and December due to seasonal factors.