South Korea's household and corporate debt is close to twice the GDP.

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Golden Finance reported that on June 25, according to the Financial Stability Report released by the Bank of Korea on Wednesday, the total debt of South Korean households and businesses has approached twice the size of the economy, with leverage levels significantly higher than those of other major developed economies. As of the end of 2025, South Korea's private sector credit leverage ratio stood at 197.9%; the household sector leverage ratio was 88.2%; and the corporate sector leverage ratio was 109.8%. The so-called private sector credit leverage ratio refers to the ratio of total debt borrowed by households and businesses from financial institutions to nominal GDP, and is an important indicator for measuring the debt burden of the private sector. Although the private sector credit leverage ratio has declined compared to the second quarter of last year, the Bank of Korea pointed out that this decline is mainly due to statistical factors, and the debt balance is actually still growing. The scale of stock investments financed through borrowing continues to increase; the pace of housing price growth has also begun to accelerate again.
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