The household debt to gross domestic product (GDP) ratio has reached almost 73 percent due to low interest rates.
 
According to the Bank of Korea's monetary and credit policy report submitted to the National Assembly on Tuesday, household loans accounted for 72-point-nine percent of nominal GDP at the end of the second quarter.
 
It was up two-point-seven percentage points from a year ago.
 
In the past year, household loans increased at an average of six-point-three trillion won a month, far outpacing the one-point-eight trillion won monthly pace during January 2012 to August 2014.
 
Analysts attributed the surge to the record low one-point-five percent benchmark rate, implemented in four reductions of a quarter percentage point each since August 2014.
 
The Bank of Korea said it will closely inspect the household debt situation although it assesses that financial institutions have the capacity to absorb a certain amount of insolvency by households or businesses.