Korea Ranks 2nd in Household Debt Growth

      January 07, 2019 13:01

      The growth in household debt in Korea compared to GDP is the second fastest in the world combined with the highest burden of debt redemption compared to income.

      According to the Bank for International Settlements on Sunday, Korea's household debt-to-GDP ratio stood at 96 percent as of the second quarter of last year, seventh out of 43 countries. But in terms of growth speed, the country was in second place with a 0.8 percentage point increase from the previous quarter, after China's one percentage point.

      The government began clamping down on rampant housing loans in August of 2017 but to little avail.

      The debt-service ratio, the proportion of disposable income required to meet debt payments, reached 12.4 percent in the second quarter last year, putting Korea at No. 6 globally, while the growth rate was the highest in the world at 0.2 percentage points on-quarter.

      Canada was the only other country whose DSR increased.

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