BANK OF KOREA said in its Financial Stability Report that South Korea’s
Household and corporate debt is approaching twice the size of the economy:
private-sector credit-to-GDP was 197.9% of nominal GDP at end-2025, with
household leverage at 88.2% and corporate leverage at 109.8%. The bank said the
modest decline versus Q2 last year mainly reflects statistical factors, while
outstanding debt continues to rise. Borrowing for equity investment has
increased and house-price inflation is reaccelerating.