BOK Warns Household Debt at 85.3% of GDP Exceeds Long-Term Average
The Bank of Korea warns that financial imbalances are deepening as household debt tops 2,000 trillion won and the Financial Vulnerability Index reaches its long-term average for the ninth straight quarter. Although the debt-to-GDP ratio is expected to ease slightly by year-end, regulators emphasize that structural vulnerabilities and rising rental costs in the Seoul metropolitan area require sustained policy caution.
Reporting via biggo.com reveals that the Bank of Korea's Financial Vulnerability Index has climbed for nine consecutive quarters to hit its long-term average, driven by household credit surpassing the 2,000 trillion won mark and a 0.1 percentage point rise in vulnerable borrowers. Deputy Governor Jang Jung-soo noted that while recent rate hikes and regulatory measures may temper further deterioration, the institution maintains a strict stance on debt management as regional housing markets show divergent trends.
Source: biggo.comThe Bank of Korea reports household debt reached 85.3 percent of GDP, warning that income disparity weakens repayment capacity for vulnerable sectors.
Source: koreatimes.co.kr
