South Korean households and companies' debt has expanded to more than double the nation's gross domestic product(GDP) amid the prolonged COVID-19 pandemic.

According to the Bank of Korea(BOK) on Thursday, as of the end of 2020, the ratio of the nominal GDP to credit in the private sector was estimated at 215-point-five percent. The ratio is the highest since related data began to be compiled in 1975.

Outstanding debt for households surged seven-point-nine percent on-year to one-point-73 quadrillion won, while the debt-to-disposable income ratio came to 175-point-five percent, up 13-point-two percent from a year ago.

Debt held by businesses rose ten-point-one percent to two-point-15 quadrillion won.

The BOK said an accelerated rise in home-backed loans from increased housing transactions and credit amid surging demand for stock investments have largely contributed to the household debt expansion.