(28 May 2012 – South Korea) South Korean banks are still struggling against massive household debt, despite the government and the banking sector taking drastic measures.In June 2011, Seoul announced plans to control the country’s heavy household debt situation that could seriously undermine economic growth. Household debt amounts to some A$850 billion or one trillion won.
The loan deposit rate for South Korea’s banks fell to 95.3 percent at the end of March as the government takes steps to reduce household debt.
The Financial Supervisory Service (FSS), the government regulator, said all 15 local banks (including KB Kookmin Bank, Woori Bank, Shinhan Bank and Hana Bank) met the loan deposit ratio limit of less than 100 percent.