South Korea’s household debt picks up in worrisome sign for Bank of Korea


South Korea is scheduled to release consumer price index (CPI) figures on Aug 20. – Bloomberg

SEOUL: South Korea’s household debt grew at a quickening clip last quarter, the latest in a series of datasets likely to deter the central bank from signaling a near-term policy pivot when authorities gather later this week.

Total household credit rose to 1,896 trillion won (US$1.43 trillion) in the April-June period, up 1.9 per cent from a year earlier, the Bank of Korea (BOK) said Tuesday (Aug 20). Mortgage loans, the biggest driver of credit, increased to 1,093 trillion won, marking a 5.9 per cent rise from a year earlier.

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