A state-run think tank has predicted that household debt will rise at a slower pace as the population continues to age. 

In a report released Tuesday, the Korea Development Institute(KDI) forecast that the ratio of household debt to gross domestic product(GDP) will drop 27-point-six percentage points by 2070 while average life expectancy will increase six-point-four years during the same time frame.

The ratio of household debt to GDP stood at 90-point-three percent in the first half of the year, placing South Korea at No. 5 in the world.

The KDI said the increase in debt is a result of higher life expectancy and other demographic changes, with older people investing in financial assets such as savings or stocks and young people borrowing money to buy homes.

Real debt held by young adults and middle-aged people in the country rose between 2013 and 2023, but real debt declined for people over age 65.