South Korea Household Debt Rises to Record 937.5 Trillion Won

South Korea’s household debt rose to a record in the third quarter as borrowing increased to finance homes and consumption.

Household credit, the sum of home loans and credit purchases, rose 13.6 trillion won ($12.5 billion) to 937.5 trillion won in the three months ended Sept. 30 from the previous quarter, the Bank of Korea said in an e-mailed statement today.

The Bank of Korea lowered its benchmark interest rate twice this year to support growth. Asia’s fourth-biggest economy grew 1.6 percent in the three months through September from a year earlier, the slowest pace since 2009.

To contact the reporter on this story: Eunkyung Seo in Seoul at eseo3@bloomberg.net

To contact the editor responsible for this story: Paul Panckhurst at ppanckhurst@bloomberg.net

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