The Ministry of Economy and Finance's logo is depicted in this file photo. According to government data, the combined debt of the South Korean government and households has exceeded 3,000 trillion won ($2.26 trillion) for the first time. This surge is attributed to reduced tax revenue, increased bond issuance, and heightened borrowing by households for real estate investments. The country's national and household debt reached a record 3,042 trillion won by the end of the second quarter, equivalent to approximately 127 percent of last year's nominal GDP of 2,401 trillion won. The national debt rose by 30.4 trillion won to 1,146 trillion won, while household debt reached a record high of 1,896 trillion won, driven by a recent upturn in housing transactions. The majority of national debt comprises government bonds, loans, and financial obligations, while household debt encompasses loans from banks and insurance companies. In the second quarter, the combined debt of the government and households increased by 44 trillion won, marking the largest quarterly rise since the third quarter of 2021. Kim Kwang-suk, head of the economic research department at the Institute for Korean Economy & Industry, expressed concerns that the escalating national and household debt could further impede the recovery of domestic demand in the future.