Rising household debt in Korea

According to a data produced by Bank of Korea early September, Korea’s household debt rises to a total of W600 trillion as of June this year, which translates into W36.83m debt per household, up by W430,000 from W36.40m at the end of last year.

Rising household debt is mainly blamed on government’s stringent control on bank loans, which makes people in urgent need of money left with no other option but to flock to ‘second financial institutions’ to which borrowers should pay outrageous amount of interests.