SEOUL, June 6 (Yonhap) — South Korea posted the highest domestic debt-to-GDP ratio among the world’s 36 major economies during the first quarter, data showed Monday. ).
The data showed that the proportion of household debt in South Korea amounted to 104.3 percent during the period from January to March, followed by Lebanon at 97.8 percent. Hong Kong 95.3%. Thailand 89.7 percent; and the United Kingdom with 83.9%.
South Korea was the only country whose household debt exceeded GDP out of 36 countries, including Japan, China, the United States and the European Union.
South Korea’s large household debt reached 1752.7 trillion won (1.4 trillion US dollars) at the end of March, down 1.5 trillion won (1,202 million US dollars) compared to the end of December, according to Bank of Korea data. (Bank).
The proportion of household debt in economies globally is declining, mainly because of rising interest rates. South Korea’s household debt ratio fell 0.7 percentage points from 105 percent in the same quarter last year, according to data from the Institute of International Finance.
However, the year-over-year rate of decline in South Korea is well below 7.2 percent in the United Kingdom, 4.7 percent in the United States, 4.6 percent in Japan, and 2.9 percent in the European Union.
The Bank of Korea recently said that a rate hike could convert existing household loans in South Korea into non-performing loans and hurt consumption.
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