Households' Use Of Credit Is Rising

The Bank of Korea said Friday that average debt per household increased to 19.3 million won ($14,800) at the end of March. Total household debt was 276.2 trillion won, up 24.3 percent during the previous year. That debt includes outstanding cash loans and credit sales.

Both cash loans and credit sales rose, but the increase in loans was particularly marked at 25 percent, largely due to an increase in bank loans, the central bank said. That offset the decline in loans from thrift savings and the postal service. Cash advances on credit cards slowed considerably.

Credit sales rose by 17 percent compared with the same month last year to 26.7 trillion won. Installment sales by merchants declined significantly, but outstanding credit card balances rose sharply, up by 1.45 trillion won, during the year ending in March.