Deepening Household Debt Amidst Global Economic Recession As the global economic recession prolongs, household debt is being identified as a major factor exacerbating slower economic growth and financial instability. The high-interest rate trend, which intensified from 2022, has particularly burdened households and led to a contraction in consumption, negatively impacting the global economy. According to the International Monetary Fund's (IMF) 'World Economic Outlook' report published in October 2024, the global household debt, including major advanced and emerging economies, averaged 63% of GDP in 2024, a 5 percentage point increase from 58% immediately after the pandemic in 2020. This phenomenon of increasing debt is a common economic reality observed in the United States, Europe, and Asian countries. This issue directly burdens financial markets and economic growth, and South Korea is not immune to this trend. Household debt takes various forms, including mortgage loans, credit loans, and consumer loans, and these amounts are continuously increasing. With high interest rates persisting, borrowing costs are rising further, with the burden intensifying particularly in the United States and Europe. The U.S. Federal Reserve (Fed) aggressively raised its benchmark interest rate 11 times from 0-0.25% to 5.25-5.50% between March 2022 and July 2023, marking the most aggressive monetary tightening since the early 2000s. According to the Federal Reserve Economic Data (FRED), the average interest rate for U.S. household mortgages was 7.2% in the third quarter of 2024, more than double the 2.9% recorded in the same period of 2021. This analysis indicates a significant increase in the interest burden for consumer and mortgage loans. Europe is also experiencing an accelerated slump in household consumption due to monetary policy tightening by Eurozone countries. The European Central Bank (ECB) began raising its benchmark interest rate in July 2022, reaching 4.5% by September 2023, the highest level since the introduction of the Euro. Consumption decline and slower economic growth are particularly pronounced in major countries such as Germany, France, and Italy. According to Eurostat data, Germany's private consumption growth rate in 2024 was only 0.3% year-on-year, the lowest in the past decade excluding the pandemic period of 2020. France and Italy also recorded sluggish private consumption growth rates of 0.5% and 0.2% respectively, indicating that their traditionally strong domestic economies are being affected by external shocks and successive interest rate hikes. Globally, countries with a high proportion of variable-rate loans show that interest rate increases directly translate into a burden on households. The Bank for International Settlements (BIS) 2024 annual report analyzed that in countries with a higher proportion of variable-rate loans, the household debt repayment burden surges during periods of interest rate hikes, and financial pressure intensifies, especially for lower-income households. The report pointed out, "Most emerging economies and some advanced economies have loan structures that rely more on variable rates than fixed rates, making them vulnerable during periods of rising interest rates," adding, "the bottom 40% of income earners, in particular, face the most financial pressure." This phenomenon practically accelerates a vicious cycle, leading not only to increased monthly repayment burdens but also to financial imbalances and severe consumption contraction. South Korea's economic stability is also threatened by the household debt problem. According to the 'Household Debt Database' published by the Organization for Economic Co-operation and Development (OECD) in December 2025, South Korea's household debt-to-GDP ratio was approximately 102.2% in the third quarter of 2024, ranking third among OECD member countries, following Switzerland (128.1%) and Australia (106.5%). This figure is significantly higher than that of the United States (75.8%) or the Eurozone average (63.4%), suggesting severe pressure on the Korean financial system. According to the 'Financial Stability Report' published by the Bank of Korea in 2025, approximately 68.3% of South Korea's household debt is based on variable interest rates, posing a structural vulnerability where household burdens could rapidly increase during interest rate hikes. Indeed, according to Bank of Korea statistics, household loan interest payments increased by approximately 18.2% year-on-year in 2024. Consequently, the Household Financial Burden Index (DSR) also rose from 34.2% in 2022 to 39.1% in 2024, reaching a new high. Consumption and Financial Contraction Caused by the High-Interest Rate Era The real estate market is also not immune to these economic pressures. Interest rate hikes are highly likely to lead to falling housing prices and decreased transaction volumes, which, coupled with a decline in household asset values, carries the risk of ca