The ratio of South Korea's household debt to its gross domestic product was the highest among key emerging countries last year, a report showed Tuesday, adding to growing concerns over the country's already high level of such liabilities.

The country's household credit accounted for 84.3 percent of its GDP at the end of 2014, which was well higher than 13 other emerging countries, including Malaysia with 68.9 percent, Hong Kong with 65.6 percent and Singapore with 60.6 percent, according to the quarterly report released by the Bank for International Settlements.

The average household credit-GDP ratio of 14 emerging economies stood at 30 percent, while that of 12 advanced countries reached 78 percent.

Switzerland's household debt-GDP ratio was 120.9 percent with comparable figures for Australia, the U.S. and Japan being 118.5 percent, 77.9 percent, and 65.9 percent, respectively.

South Korea's figure gained 12 percentage points from the end of 2009, while emerging economies saw their corresponding figure rise 10 percentage points on average over the five-year period.

The BIS report said South Korea's total household debt reached $1.15 trillion in 2014, up $380 billion from five years ago.

Growing household debt has been the Seoul government's policy bugbear as household debt, in particular mortgage loans, increased sharply following the Bank of Korea's four rate cuts that sent the key interest rate to a record low of 1.5 percent.

The financial authorities here have vowed to keep close tabs on the country's fast-growing household debt to prevent any fallout from China's financial turmoil and a potential U.S. interest rate hike from aggravating the matter.

In a report submitted for an annual parliamentary audit on Tuesday, the nation's financial regulator vowed to take action if need arises.

"We will thoroughly go ahead with a comprehensive plan to manage household debt and take additional measures if necessary," the Financial Supervisory Service said.

The South Korean financial authorities currently operate a special team consisting of local banks and other financial institutions, to keep rising household loans under control.

Lenders will be closely monitored and urged by the financial watchdog not to extend excessive loans to households before the end of this year upon the start of a new screening system for home-backed loans.

From next year, banks will be required to give out loans after assessing a borrower's debt repayment ability through annual income rather than the value of the collateral. (Yonhap)