South Korea's Household Debt-to-Income Ratio Stands at 171.1%, 7th Highest in OECD

[Economy 365]

Although the household debt ratio is declining, it remains among the highest of major developed countries.

According to the Nara Institute for Economic Policy, South Korea's household debt-to-disposable income ratio was recorded at 171.1% last year.

While the figure has fallen for four consecutive years after peaking at 193.4% in 2021, it still ranks as the 7th highest among the 38 OECD member countries.

The outstanding balance of household debt has continued to rise every year since 2009, with the exception of 2023.

Furthermore, South Korea's household debt-to-GDP ratio stood at 88.6% last year, the 6th highest among countries compared by the Bank for International Settlements (BIS).

The institute analyzed that while the debt ratio is improving due to income growth, it is difficult to conclude that the country has entered a full-scale deleveraging phase, as the rate of debt growth has recently begun to rise again.

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