Household debt to continue shrinking in 2nd half
Customers sit at a commercial bank's loans counter in Seoul on July 13. YonhapBy Anna J. ParkAmid soaring key interest rates and a sluggish housing market, the country's household debt is forecast to continue on a downward path in the second half of this year, according to financial market analysts Sunday.According to data compiled by the Financial Services Commission (FSC), the country's aggregate household debt decreased by 800 billion won ($603 million) to 1,060 trillion won, as of the end of June.It was the first biannual decrease since the FSC began compiling such data in 2015. The amount of household debt had been increasing fast, particularly since the outbreak of COVID-19 in 2020. In 2020, the annual household debt increased by 8 percent throughout the year, while the annual increase rate slowed to 7.1 percent in 2021.Although the rate of increase in household debt slowed during the previous year, the aggregate debt amount actually logged a net reduction in the first half of this year, due to a series of interest rate hikes from both inside and outside of Korea.It is estimate
