South Korea's household debt increased at the world's second fastest pace and the debt-to-income ratio hit a record high in the first quarter.
 
According to a report by the Bank for International Settlements(BIS) released on Sunday, the debt service ratio(DSR) of the local household sector came to 12-point-five percent in the first quarter. 
 
It was up point-seven percentage point from a year earlier and marked the highest level since the first quarter of 1999, when the BIS started to compile related data.
 
The on-year increase was the largest among the 17 countries surveyed.
 
The DSR measures how much of a family's disposable income must be devoted to servicing their loan obligations.
 
The country's household debt was also excessive in terms of its gross domestic product, as it was equal to 93 percent of the GDP in the January-March period, ranking eighth in the world. It ranked first among 18 emerging countries. 
 
The country's household debt to GDP ratio increased by four-point-six percentage points on-year in the first quarter, posting the second largest gain after China among 43 nations.