The debt level of South Korean households and businesses is close to twice the country's GDP.

```htmlJinse Finance reported that on June 25, according to the "Financial Stability Report" released by the Bank of Korea on Wednesday, the total debt size of South Korean households and enterprises has approached twice the size of the economy, with leverage levels significantly higher than other major developed economies. By the end of 2025, the credit leverage ratio of South Korea's private sector will reach 197.9%; the household sector leverage ratio will be 88.2%; and the corporate sector leverage ratio will be 109.8%. The so-called private sector credit leverage ratio refers to the proportion of total debt borrowed by households and enterprises from financial institutions to nominal GDP, serving as an important indicator to measure the private sector's debt burden. Although the private sector credit leverage ratio has declined compared to the second quarter of last year, the Bank of Korea pointed out that this decrease is mainly due to statistical factors, while the debt balance is in fact still continuously growing. The scale of borrowing to invest in stocks continues to increase; and the pace of housing price rises has started to accelerate again.```