household debt-to-GDP ratio 91.1% → 90.3% contraction

The ratio of household debt to nominal GDP shrank to 90.3% in the third quarter of last year from 91.1% in the second quarter.

The Bank of Korea's "money circulation" data for the third quarter of last year showed that the ratio of household debt shrank because financial debt increased due to increased home purchases but was lower than nominal GDP growth.

An official from the Bank of Korea estimated that the household debt ratio will be lower than 90.3% in the third quarter of last year, as household debt growth was tentatively recorded in October and November last year.

The increase in surplus funds of households decreased by 3.5 trillion won from 41.2 trillion won in the second quarter to 37.7 trillion won due to the increase in financial debt from home acquisition in the third quarter of last year due to demand for directors in the fall.