Household debt growth slows slightly in May

SEOUL, June 14 (Yonhap) -- South Korea's household debt growth slowed slightly in May, data showed Wednesday, but financial authorities said they will make more efforts to stabilize the pace of growth.

Household debt rose by 10 trillion won (US$8.9 billion) last month, down from growth of 11.9 trillion won for the same month last year, according to the data by the Financial Services Commission.

In the first five months of this year, household debt grew by 32.5 trillion won, compared to an expansion of 38.8 trillion won for the same period last year.

The country's household debt has crimped private consumption and made it harder for the central bank to increase its key interest rate.

Compared to a month earlier, the pace of household debt growth quickened, as it grew by 7.2 trillion won in April.

Finance Minister Kim Dong-yeon has said the government is closely watching Seoul's property market, adding it is showing signs of overheating.

Many analysts have speculated that the government may tighten lending rules on home buyers to help ease the pace of household debt growth.
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