South Korea is the world’s most indebted major economy, according to data from the Institute of International Finance, a U.S.-based trade group for global financial services. This puts Seoul at the forefront of a global issue that many countries grapple with and its position is not without considerable risks.

South Korea’s household debt as a proportion of gross domestic product (GDP) stood at 102.2% in this year’s first quarter, making it the only country whose household debt exceeded its GDP. The ratio was 105.5% in the same period last year.