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Title Vol. 22 Recent credit growth trends in Korea’s private sector and its implications (English Edition)

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Recent credit trends in Korea’s private sector

* According to the Bank for International Settlements(BIS), the ratio of private sector credit(household credit +corporate credit) to the GDP in Korea is currently experiencing the steepest increase since the 2008 Global Financial Crisis

  - BIS data regarding the private sector credit of major countries shows that Korea's domestic credit-to-GDP ratio was 197.6%, up 10.0% from the previous year(187.6%) at the end of 2019.
    • By sector, the ratio of household credit and corporate credit to GDP increased by 3.6%p and 6.4%p, respectively, to 95.5% and 102.1%, respectively, year-on-year.

  - Compared to the past, the recent growth trend is the steepest trend since the 1998 Asian Financial Crisis and the 2008 Global Financial Crisis.
    • After the Global Financial Crisis, the growth trend showed a modest rise; increasing by 15.5%(182.1% → 197.6%) in the eight quarters in the period from Q4 of 2017 to Q4 of 2019.

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