trending Market Intelligence /marketintelligence/en/news-insights/trending/on9xuz_NH7uixqhJe2eghw2 content esgSubNav
In This List

South Korean banks see accelerating exposure to household debt

Blog

Latin American and Caribbean Market Considerations Blog Series: Focus on LGD

BLOG

Banking Essentials Newsletter: June Edition

Case Study

กรณีศึกษา A Bank Takes its Project Finance Assessments to a New Level

Blog

Financial Institutions Factor Transition Risk into Climate-Related Stress Testing


South Korean banks see accelerating exposure to household debt

South Korean banks' exposure to household debt has accelerated in the last few years, with household debt up 46.68% to 1,344.279 trillion won as of 2016-end from the beginning of 2012. Meanwhile, growth in retail loans at the largest South Korean banks has outpaced corporate loan growth since 2014.

The increasing amount of household debt has sparked concern about risks to the country's financial system, though the Bank of Korea has said in a recent report that the financial system is resilient and "remains solid," Yonhap News Agency reported March 24.

The country's lawmakers have vowed to control mounting debt levels. Finance Minister Yoo Il-ho said during a January press conference that the government has implemented measures, including tightened restrictions on housing-related borrowing.

SNL Image

As of March 28, US$1 was equivalent to 1,112.45 South Korean won.

SNL Image
Click here to analyze a bank, undertake peer analysis and look at country-level banking statistics and macroeconomic data.
Click here for more stories on Asia-Pacific banks and here to set real-time alerts for such data-driven articles. In Step 1, choose your delivery preference. In Step 2, select Banking under "Data Dispatch Asia-Pacific" section and then click apply at the bottom of the page.