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