This Composite image of downtown SeoulThe stacks of Korean Win, and Korean People walking on a sidewalk are a good indicator of the economy in a country, which is dependent on many factors.

It The truth has been revealed South Korea’s In the first quarter this year, the household debt to GDP ratio dropped below 100 percent for three and a 1/2 years. This The high interest rates that have been in place for a long time are credited with this development.

According Then, you can get in touch with us. Institute You can also find out more about the following: International Finance’s Global Debt Report Released on May 9, South Korea The eurozone, represented by a single number of 34 countries, had the highest ratio of household debt to GDP among the 34 countries that were surveyed in the first quarter this year. It was 98.9 per cent. Following South Korea were Hong Kong At 92.5 percent Thailand The 91.8 per cent figure is the highest in the nation. United Kingdom 78.1% of the population is able to pay their bills. United States At 71.8 %. South Korea The top spot has been held for four years, since the COVID-19 pandemic started in 2020. Despite A decrease in household debt ratio South Korea Still has not shed its “disgraceful” status.

South Korea’s For the first time, the household debt ratio dropped below 90 percent. This was the case in the third quarter 2020, when it reached 100.5 percent. At In 2022 the household debt ratio peaked at 105.5%. Today, it is 6.6 percent lower. When When the ratio is higher than 100 percent it means household debt exceeds an economy’s size. Compared To a year ago South Korea’s This was the fourth-largest decrease in ratio. Hong Kong The -3.8 percentile point is the lowest percentage of all. United Kingdom at -3.5 percent, and the United States at -2.8 percentage points. This The trend towards improvement is evident. South Korea’s Household debt ratio

HoweverMany people point out that it is still a way off before we reach a stable household debt ratio. According Then, you can get in touch with us. Bank You can also find out more about the following: KoreaWhen household debt exceeds 80 percent GDP, its negative effects on the economy become significant. For The central bank believes household debt should be reduced by 20 percentage points to promote economic growth and financial security.

HoweverThe issue of concentration of real estate in South Korea This is a major obstacle. HousingOver 60 percent of all loans are related to mortgages or leases. South Korea’s Household debt There These loans cannot be reduced abruptly.

MeanwhileThe upward trend of corporate debt, a pillar of private credit, is not abating. As The first quarter is a time of great excitement. South Korea’s The ratio of non-financial company debt to GDP remained unchanged at 123.0 per cent, the same as a year earlier, and ranked fourth among major countries. This The following is an example: “debt-ridden companies,” Even though you are paying high interest rates on your loan, the amount of money you have paid has not decreased. Apart You can also find out more about us on our website. South KoreaThe only countries with higher ratios than this are Hong Kong At 261 percent China 172,6 percent is the percentage of the total population. Singapore At 127.2 percent.

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