SEOUL Nov 24 South Korea's household debt grew
at a faster pace in the third quarter than it did in the
preceding three months, central bank data showed on Thursday, as
easy monetary policy continued to boost mortgage demand.
Household debt, including loans and other debt owed by South
Korean households, jumped 11.2 percent in the third quarter from
a year earlier to 1,295.8 trillion won, accelerating from 11.1
percent expansion in the June-quarter, preliminary data from the
Bank of Korea showed.
The sharp growth in household debt comes despite years of
government efforts to curb the amount of private sector debt,
which threatens to destabilize household finances when and if
interest rate rises.
The current base rate is at a record low of 1.25 percent.
Mortgages at depository institutions jumped 13.4 trillion
won to 433.6 trillion won in the third quarter from three months
earlier, accelerating from a 13 trillion won expansion in the
(Reporting by Cynthia Kim; Editing by Simon Cameron-Moore)