[South Korea's Household and Corporate Debt Approaches Twice the GDP] According to a report by Jinse Finance on June 25, based on the Financial Stability Report released by the Bank of Korea on Wednesday, the total debt of South Korean households and corporations has approached twice the size of the economy, with leverage levels significantly higher than other major developed economies. As of the end of 2025, South Korea's private sector credit leverage ratio stood at 197.9%; among which, the household sector leverage ratio was 88.2%, and the corporate sector leverage ratio was 109.8%. The private sector credit leverage ratio refers to the proportion of total debt borrowed by households and corporations from financial institutions relative to nominal GDP, serving as an important indicator for measuring the debt burden of the private sector. Although the private sector credit leverage ratio has decreased compared to the second quarter of last year, the Bank of Korea pointed out that this decline is mainly due to statistical factors, as the debt balance is actually still growing. The scale of borrowing for stock investments continues to increase, and the pace of housing price growth has also started to accelerate again.