Anchor: South Korea's household debt exceeded one-point-three quadrillion won for the first time in the fourth quarter. Aggregate household debt grew a record 47-point-seven trillion won from the previous three-month period.
Our Kim In-kyung has more.
 
Report: South Korea's household debt increased by the largest amount ever in the fourth quarter of last year to surpass one-point-three quadrillion won, or one-point-13 trillion dollars.
 
Loans issued by non-banking institutions accelerated in particular, showing a balloon effect as those who couldn't borrow from commercial banks found their way to non-banking lenders.
 
According to data released by the Bank of Korea on Tuesday, the country's aggregate household debt stood at one-point-344 quadrillion won at the end of last year, exceeding one-point-three quadrillion won for the first time.
 
Aggregate household debt grew 47-point-seven trillion won from the third quarter, which is the largest amount since statistics were compiled in 2002. The three-point-seven percent growth was also the largest leap since four-point-two percent in the fourth quarter of 2006.
 
Financial authorities attributed the rapid growth in debt to mortgages issued by the secondary financial market and recommended thorough risk management.
 
The Financial Services Commission(FSC) held a meeting on non-banking sector loans on Tuesday and discussed ways to cope with high household debt.
 
The FSC said the debt increase will stabilize once it introduces a stricter credit review system for non-banking institutions from next month, which will make it mandatory to do an income review of debtors and require principal payments on loans from the start. 

FSC Vice Chairman Jeong Eun-bo said interest on loans have been ticking up as commercial banks have tightened risk management and as interest rates in the U.S. have been rising. He called for tailored policies to support the self-employed and marginal borrowers who are likely to be especially hard hit by rising interest rates.
Kim In-kyung, KBS World Radio News.