Household debt in South Korea reached a record high at the end of last year, but the rate of increase slowed down.

According to the 'Household Credit (tentative)' report released by the Bank of Korea on the 18th, the outstanding balance of household credit at the end of the fourth quarter of 2024 was 1,927.3 trillion won, an increase of 13 trillion won from the previous quarter and 41.8 trillion won from the same period last year. This is the highest household debt ever recorded since related statistics were released.

Of this, the outstanding balance of household loans was 1,807 trillion won, an increase of 10.6 trillion won from the end of the previous quarter, and the outstanding balance of sales credit was 120.3 trillion won, an increase of 2.4 trillion won.

However, the increase in household loans (16.7 trillion won → 10.6 trillion won) decreased by 6.1 trillion won from the previous quarter, indicating that the household loan management by government agencies and commercial banks is having an effect.

In detail, the increase in deposit banks was reduced (+22.7 trillion won → +6.9 trillion won) due to the sharp reduction in the increase in housing mortgage loans, but non-bank deposit-taking institutions turned to increase (-1.7 trillion won → 6 trillion won) as the increase in housing mortgage loans expanded and the decrease in other loans narrowed.

In addition, the decrease in the housing mortgage loan reduction in other financial institutions, etc. narrowed (-3.7 trillion won → -2.6 trillion won), and other loans turned to increase (-600 billion won → +200 billion won), reducing the decrease (-4.3 trillion won → -2.4 trillion won).

On the other hand, sales credit at the end of the fourth quarter of last year increased by 2.4 trillion won (+1.8 trillion won → +2.4 trillion won) from the end of the previous quarter, mainly by credit finance companies.

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