Household Debt Reaches W1,500 Trillion

  • By Bang Hyeon-cheol

    August 24, 2018 12:40

    Korean household debt is expected to surpass a record W1,500 trillion soon, though the pace of growth keeps slowing (US$1=W1,122).

    The Bank of Korea said Thursday that households owed W1,493.2 trillion at the end of the second quarter, up W25 trillion from the previous quarter. At this rate, the amount is expected to surpass W1,500 trillion this quarter.

    The main culprit was the loans from commercial banks, which grew W12.8 trillion, higher than both the W8.2-trillion increase in the first quarter and W12 trillion a year ago.

    But overall the pace of debt growth has slowed to 7.6 percent, the lowest since the first quarter of 2015 and the sixth month of a slowdown.

    "We expect the pace of debt growth to keep slowing," a BOK staffer said. "But we can't let our guard down since household debt is still growing faster than income."

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