Household debt jumps 34 pct over past 3 years

By Yonhap

Published : Nov. 25, 2017 - 15:56

South Korea's household debt soared 34.4 percent over the past three years, buoyed by the government's policy of easing lending regulations for home mortgages and by low interest rates, data showed Saturday.

At the end of September, household debt stood at 1,419.1 trillion won ($1,306 billion), up 362.7 trillion won from three years earlier, according to data by the Bank of Korea.

In comparison, household debt grew by 165.2 trillion between September 2011 and September 2014.

(Yonhap)

In August 2014, the government eased lending rules for home mortgages to prop up the property market as part of its economic stimulus packages.

Although there is little risk that household debt may spark a financial crisis, rising debt chokes off private consumption and makes it difficult for the central bank to raise its key rate amid global monetary tightening. (Yonhap)