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Korea's household debt hit record high in Q2

South Korea's household debt hit a record high in the second quarter, central bank data showed Wednesday, despite tighter lending rules meant to curb rapidly growing household debt.

The country's overall debt incurred by households came to 1,388.3 trillion won ($1.22 trillion) as of end-June, up 10.4 percent from a year earlier, according to data compiled by the Bank of Korea.

Household debt rose 2.1 percent in the second quarter from the previous three month period, it said.

(Yonhap)
(Yonhap)

South Korea's household debt has been on the rise in recent years as people borrowed money from banks and other financial companies to buy homes, cover living costs and invest in real estate and other businesses.

Earlier this month, the government designated all 25 districts in Seoul and two cities -- Sejong and Gwacheon -- as "overheated speculative districts" in the latest move to rein in rapidly growing household debt. Sejong is an administrative city located some 130 kilometers southeast of Seoul, and Gwacheon city lies just south of the capital.

In particular, 11 districts in Seoul and Sejong City have been designated "speculative districts" subject to far tougher taxes, financial regulations and state scrutiny.

The government is set to unveil comprehensive measures in coming weeks on how to tackle rising household debt. (Yonhap)
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