According to a report from the Bank of Korea released on the 20th, South Korea's household credit balance reached 1,979 trillion won at the end of last year, marking a 2.9% increase from the previous year. It is estimated that should this trend continue, the total household debt could exceed 2,000 trillion won within this year, with only 21 trillion won remaining to reach that significant threshold. The data indicates that household loans stood at approximately 1,852.7 trillion won, while sales credit accounted for 126 trillion won, leading to a cumulative household credit total of 1,978.8 trillion won.

In examining the quarterly growth of household credit, the first quarter saw a modest increase of 23 trillion won, which surged to 25 trillion won in the second quarter before tapering off to 14.8 trillion won in the third quarter and 14 trillion won in the fourth. A slowdown in housing mortgage loans was particularly noticeable in the last quarter, attributed to government measures aimed at stabilizing the housing market. Although household loans showed modest growth overall in the fourth quarter, there were significant variations among lending institutions, with commercial banks witnessing a drastic decrease in mortgage lending from 10.9 trillion won in the third quarter to 4.8 trillion won in the fourth quarter, while non-bank financial institutions showed an increase in mortgage lending from 4.7 trillion won to 6.5 trillion won.

The sales credit balance at the end of last year was reported at 126 trillion won, reflecting a growth of 5.7 trillion won or 4.7% over the course of the year. This increase indicates ongoing consumer reliance on credit amidst tightening lending regulations and reflects broader economic conditions that potentially impact households' financial stability in the future. Analysts are keeping a close watch on these trends as South Korea approaches a notable debt milestone, which raises concerns about household financial health and the long-term implications for the country's economy.