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 reaccelerat

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.