South Korea experienced a significant increase in household debt during the third quarter, with total household credit rising by 18 trillion won, equivalent to approximately $12.9 billion, compared to the previous quarter.
The rise in debt levels has influenced the central bank"s policy decisions, which were delayed until last month. Mortgage loans, a key component of household credit, also saw a notable increase, marking the highest growth since the third quarter of 2021.
The surge in borrowing reflects ongoing economic pressures and raises concerns about the sustainability of such debt levels in the current economic climate.