Household Debt Surpasses W1 Quadrillion

  • By Kim Jung-hoon

    March 11, 2021 13:01

    Household debt in Korea has surpassed W1 quadrillion for the first time (US$1=W1,143).

    The Bank of Korea said Wednesday that the household loan balance at banks stood at W1 quadrillion as of the end of February, up W6.7 trillion from the previous month.

    Rising housing debt played the main role in the surge. The housing loan balance reached W733.3 trillion as of the end of February, rising W6.4 trillion in just a month and the biggest monthly increase since a year ago.

    However, credit loans and overdrafts did not rise noticeably as people kept their belts tight. The credit loan balance stood at W268.9 trillion during the same period, rising by W300 billion in a month, which was less than in January.

    The BOK attributed the slowed growth to the cooling of a stock-investment frenzy that drove the Korea Composite Stock Price Index to record highs earlier this year. Also, financial authorities have toughened loan requirements to manage risk, the BOK said.

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