According to the finance ministry and the central bank, the country's combined national and household debt reached a record 3,042 trillion won at the end of the second quarter. This amounted to approximately 127 percent of last year's nominal GDP of 2,401 trillion won.
National debt increased by 30.4 trillion won from the previous quarter to 1,146 trillion won amid a sluggish economy and ongoing tax revenue shortfalls. Household debt surged to a record high of 1,896 trillion won, primarily due to the recent recovery in housing transactions.
National debt primarily consists of government bonds, loans, and financial obligations, with government bonds making up the majority. Household debt encompasses loans from banks and insurance companies.
The combined debt of the government and households increased by 44 trillion won in the second quarter from the previous quarter, compared with a 20 trillion-won rise in the first quarter. It marked the largest quarterly increase since the third quarter of 2021, when the COVID-19 pandemic was at its peak.
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