Household debt per borrower hits record high

A customer eyes fruits at a supermarket Yonhap — A supermarket/ Yonhap

SEOUL, April 2 (AJP) - South Korea's household debt burden has reached a record high, with the average per capita debt climbing to nearly 96 million won ($65,500).

According to data released Wednesday by the Bank of Korea, the average household debt per borrower stood at 95.5 million won at the end of the fourth quarter of last year, the highest level since records began in 2012.

While the total number of borrowers declined by 110,000 to 19.68 million — its lowest level in four years — aggregate household debt expanded by 27.1 trillion won, reaching 1,880.4 trillion won.

The rise in average debt per borrower reflects an intensifying concentration of financial burdens among a shrinking pool of individuals. The figure has now increased for six consecutive quarters since the second quarter of 2023, when it stood at 93.32 million won.

South Korea's total household debt first surpassed the 1,700 trillion won mark in the third quarter of 2020, later breaching 1,800 trillion won in the second quarter of 2021. The debt load has continued its upward trajectory, marking three consecutive quarters of growth since early 2024.

Kim Dong-young davekim0807@ajupress.com

Household debt per borrower hits record high

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