The Detonator of Korea's Financial Market in the Second Half?
Despite the Bank of Korea continuing its interest rate hike trend, household debt in the Republic of Korea has surpassed the 2,000 trillion won (approximately $1.4 trillion) mark for the first time in history. The magnitude of the increase in the second quarter of this year recorded the highest leve
In a concerning turn of events, the Republic of Korea's household debt has crossed the 2,000 trillion won threshold for the first time ever, marking a staggering increase in the second quarter of 2026. The Bank of Korea's statistics reveal that household credit surged to 2,019.8 trillion won, an all-time high since records began in 2021.
This represents the most significant rise in the past 19 quarters, with the quarterly increase reaching 25.9 trillion won, about 1.7 times the previous quarter's growth of 14.8 trillion won. This unprecedented surge in household debt has sparked concerns about a potential financial market detonation in the second half of the year.
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