S. Korea's total household debt surpassed US$ 1.33 tril. in Q3
- 5 years ago
South Korea's total amount of household credit, which includes household loans and credit card spending, surpassed one-point-three-three trillion U.S. dollars in the third quarter... driven mainly by a rise mortgage loans.
Ko Roon-hee reports.
The total debt of Korean households continues to grow... but more slowly than in the past.
According to Bank of Korea on Wednesday...,
total household debt in the third quarter came to more than one-point-three-three trillion U.S. dollars... marking an increase on year of 6-point-7 percent.
The central bank attributed the hike to a rise in mortgage loans,... which jumped by more than 7-point-6 billion U.S. dollars from the quarter before.
Still, it was the slowest rise in overall household debt since the fourth quarter of 2014, and the percentage increase year on year has fallen for seven quarters in a row.
The BOK attributed part of the slowdown to the government's policies to reduce household debt, including stricter loan screening rules announced in November last year.
But this doesn't mean the overall situation is improving.
"Because of the government's policies to curb household borrowing, it's been rising more slowly on year. But the overall burden is growing... because household debt is still rising faster than the nation's income."
The BOK added that households' disposable incomes grew by four-and-a-half percent last year... which is slower than the recent debt growth.
Separate data from the Bank for International Settlements show Korea's household debt accounted for 95-point-2 percent of the nation's GDP at the end of March this year.
Local experts also paint a grim picture.
"Throughout the year, money owed by households to non-bank lenders has increased, and loans for private businesses are also rising. This means financial risks still exist."
Meanwhile, the central bank says the effect of the measures the government introduced in September to stabilize the overheated housing market will be reflected in next quarter's report.
Ko Roon-hee, Arirang News.
Ko Roon-hee reports.
The total debt of Korean households continues to grow... but more slowly than in the past.
According to Bank of Korea on Wednesday...,
total household debt in the third quarter came to more than one-point-three-three trillion U.S. dollars... marking an increase on year of 6-point-7 percent.
The central bank attributed the hike to a rise in mortgage loans,... which jumped by more than 7-point-6 billion U.S. dollars from the quarter before.
Still, it was the slowest rise in overall household debt since the fourth quarter of 2014, and the percentage increase year on year has fallen for seven quarters in a row.
The BOK attributed part of the slowdown to the government's policies to reduce household debt, including stricter loan screening rules announced in November last year.
But this doesn't mean the overall situation is improving.
"Because of the government's policies to curb household borrowing, it's been rising more slowly on year. But the overall burden is growing... because household debt is still rising faster than the nation's income."
The BOK added that households' disposable incomes grew by four-and-a-half percent last year... which is slower than the recent debt growth.
Separate data from the Bank for International Settlements show Korea's household debt accounted for 95-point-2 percent of the nation's GDP at the end of March this year.
Local experts also paint a grim picture.
"Throughout the year, money owed by households to non-bank lenders has increased, and loans for private businesses are also rising. This means financial risks still exist."
Meanwhile, the central bank says the effect of the measures the government introduced in September to stabilize the overheated housing market will be reflected in next quarter's report.
Ko Roon-hee, Arirang News.