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Household Debt Reaches New High in Slower Increment

Written: 2017-05-23 14:41:07Updated: 2017-05-23 14:44:36

Household Debt Reaches New High in Slower Increment

Anchor: South Korea's household debt came close to one-point-360 quadrillion won in the first quarter, again posting a new high. However, the figure rose by a smaller amount compared to last year. 
Our Bae Joo-yon has more.
 
Report: The amount of debt held by South Korean households reached a new high, breaking the record posted just the previous quarter. 
 
According to the Bank of Korea on Tuesday, the country's aggregate household debt stood at one-point-359 quadrillion won, or one-point-21 trillion dollars, in the first quarter.
 
The pace of debt growth, however, slowed down with the quarterly increase standing at some 17 trillion won, only a third of the 48 trillion won added in the fourth quarter of 2016.
 
Setting aside credit card spending, the household indebtedness is measured at about one-point-287 quadrillion won, around just one-point-three percent higher than the previous quarter. 
 
Bank loans increased by only one-point-one trillion won to 618-point-five trillion won after seeing a whopping 13-and-a-half trillion won increase in the last three months of 2016.
 
The debt growth calmed down on the back of tougher lending regulations and higher spread rates.
 
Lending by non-banking financial institutions to households increased by seven-point-four trillion won in the first quarter. That's only half of the growth posted in the previous quarter.
 
The Financial Services Commission said though the rise in household debt appears to be steadily stabilizing, the sheer amount still calls for caution.
Bae Joo-yon, KBS World Radio News. 

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