S Korea household debts rise

Dhaka,  Tue,  06 December 2016
Published : 24 Nov 2016, 14:14:40

South Korea household debts rise in third quarter

S Korea household debts rise
Household debts in South Korea grew at a faster pace in the third quarter than it did in the preceding three months, central bank data showed on Thursday.

The debts kept a record-breaking trend as easy monetary policy continued to boost mortgage demand.

Household debt, including loans and other debt owed by South Korean households, jumped 11.2 per cent in the third quarter from a year earlier to 1,295.8 trillion won.

It has accelerated from 11.1 per cent expansion in the June-quarter, preliminary data from the Bank of Korea showed.

The sharp growth in household debt comes despite years of government efforts to curb the amount of private sector debt, which threatens to destabilize household finances when and if interest rate rises.

The current base rate is at a record low of 1.25 per cent.

Mortgages at depository institutions jumped 13.4 trillion won to 433.6 trillion won in the third quarter from three months earlier, accelerating from a 13 trillion won expansion in the June-quarter, according to a news agency report.

-SRS-
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