The soaring price of protein "nearly doubled in 2 years" also casts a shadow over the "Manjalo" boom in the US.

South Korean household debt reached 2 trillion won in the second quarter of this year, likely surpassing that level, according to estimates. Household debt, represented by the total value of household loans, includes money borrowed through banks or credit cards for transactions such as home purchases or stock investments. The Bank of Korea is set to release the preliminary data for Q2 household debt on September 19.

At the end of the first quarter, the figure stood at 199.3 trillion won, the highest on record. Household debt increased by 14 trillion won from the end of the previous year, leaving a gap of 2 trillion won. Among the household debt, loans taken from financial institutions saw a surge of 18.65 trillion won, with credit card payments amounting to 127.3 trillion won, a 1.1 trillion won increase.

The faster increase in household loans is attributed to the surge in home purchases and stock investments. Financial data from the Financial Committee shows that overall household loans from financial institutions rose from 3.5 trillion won in April to 9.3 trillion won in May and 8.3 trillion won in June, a total increase of 21.1 trillion won in the second quarter.

When compared to the Bank of Korea's household debt, the broader range of household debt is much higher. With household debt exceeding 2 trillion won, the risk of financial instability may grow if interest rates rise further. The Financial Committee has raised the benchmark interest rate from 2.50% to 2.75% since last month, and there are predictions that it could be raised again next month.

As household debt continues to rise, vulnerable households may face greater difficulties, potentially impacting economic growth. Despite household debt reaching 2 trillion won, the financial stability indicator (FSI) remains at the 'caution' level (16.9), higher than the level seen at the end of last year (16.0). The Bank of Korea's latest report in June stated that the household loan delinquency rate is below the long-term average, but the share of vulnerable households (based on the number of households) has increased.

The government's comprehensive financial policy announced on September 13 emphasized that the household debt-to-GDP ratio in South Korea is still relatively high at 88.6%, down only 1.0 percentage point from the previous year. However, improvements in trade conditions and a surge in semiconductor exports are expected to lower this ratio further this year.

Compared to other major economies, South Korea's household debt-to-GDP ratio is still higher than the United States (68.1%), Japan (61.1%), the United Kingdom (73.6%), and France (59.7%).