SEOUL, Aug 22 (Reuters) - South Korea’s outstanding household debt grew at its slowest year-on-year pace in almost 15 years in the June quarter, central bank data showed on Thursday.
Households owed 1,556.1 trillion won ($1.29 trillion) in loans and purchases on credit as of the end of June, up 4.3% on-year after a 4.9% gain three months earlier, the Bank of Korea data showed.
It was the slowest growth since the September quarter of 2004, with the pace having fallen for 10 consecutive quarters following government efforts to contain the high household debt to disposable income ratio.
Slowing household debt growth is also widely seen as supportive of further policy easing by the central bank as Asia’s fourth-largest economy struggles with softer growth and low inflation.
$1 = 1,205.1000 won Reporting by Choonsik Yoo; Editing by Sam Holmes