Household and corporate debt GDP 2.1 times in the third quarter… The best of all time
Due to the coronavirus outbreak, loans from households and businesses increased and loans from various investment funds increased sharply, causing household and business debt to exceed twice the gross domestic product and GDP.
According to the Bank of Korea’s Financial Stability Report, at the end of the third quarter, private sector credit stood at 211% of nominal GDP, the highest level since statistics were prepared in 1975.
Household debt increased by 7% from a year ago to 168.21 trillion won, but disposable income increased by only 0.3%, and the ratio of debt to disposable income was 171.3%, the highest since the statistics were written.
The BOK warned, “If the income improvement is weak due to delays in economic recovery, etc., we must be aware of the possibility of increased insolvency.”
Yonhap News TV article inquiries and reports: katok/line jebo23
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