South Korea's debt surpasses $4.27 trillion

South Korea's total debt has reached a record high, surpassing $4.27 trillion. This new figure includes government, corporate, and household debt. A recent report highlighted that this debt has increased by 4.1 percent compared to a year ago. Government debt alone saw a significant surge of 11.8 percent year-on-year. Currently, it stands at 1,141 trillion won. Meanwhile, corporate debt has risen to 2,798 trillion won, an increase of 2.9 percent, while household borrowing grew by 2.1 percent to reach 2,283 trillion won. The country’s total debt now equals 247.2 percent of its gross domestic product (GDP), which is the lowest it has been since mid-2021. This increase comes amid weak domestic demand and declining revenue. In response to these financial challenges, South Korea's Financial Services Commission announced new measures to support savings banks. These measures include easing regulations on mergers and acquisitions and introducing a fund to help manage troubled loans. Savings banks have seen their assets grow significantly over the past years. However, they focus heavily on real estate and financially weak customers. This leaves them vulnerable to economic fluctuations, which has affected their profitability.