The share of South Korean household borrowers with a debt-service ratio of at least 100% rose to 7.1% at the end of the second quarter. It was the first increase in 14 quarters, reversing a decline that had continued since the end of 2022.
Those borrowers held more than 23% of total household-loan balances, while the average debt-service ratio across all borrowers rose to 36.0%. A ratio above 100% means annual principal and interest payments equal or exceed annual income.