The number of debtors and their loan balances from local banks are projected to hit record highs this year amid rising household debt, industry data indicated Monday.

Some 10.5 million people took out loans from commercial banks as of the end of June, data showed, totaling 487.7 trillion won ($442.6 billion). The figure peaked at 10.45 million people in 2012 and dipped to 10.44 million in 2013.

The loan total translates to individual debtors owing 46.41 million won each on average.

Market watchers say that at the current pace, the number of debtors is likely to exceed 11 million by the end of the year as household debt levels have risen sharply in the second half on government-led economic recovery policies.