Korean household debt falls for the first time in a year

[Source: Bank of Korea]

South Korea‘s household debt fell for the first time in a year to total 1882 trillion won ($1.37 trillion) in the first quarter of 2024. This was down 2 trillion won from a year earlier thanks to prolonged high interest rates and a sluggish real estate market. The decline increases expectations of cutting rates.

According to the data released by the Bank of Korea as of Tuesday, the total outstanding balance of household liabilities, including credit card loans, was 188.2 trillion won. The latest balance represents a reduction of 2.5 trillion won from the fourth quarter of 2023.

Among household loans, mortgage loans increased by 12.4 trillion won to 1076 trillion won but the growth slowed down compared to the fourth quarter of the previous year.