South Korean households saw their income from interest-paying financial products drop by 13 trillion won ($13 billion) over the last nine years, data showed Thursday, reflecting the country’s low interest rate and ballooning household debt.

Households’ net interest income, the excess earned from the spread between their interest income and interest payments, came in at 4.3 trillion won in 2012, shrinking from 17.4 trillion won in 2003, according to the data compiled by the Bank of Korea.

The sharp decline came as the gap between the money they spent to pay off interest and the money they reaped from savings deposits narrowed amid low interest rates.

The country’s policy rate, which hovered at the 4-5 percent range ahead of the global financial crisis, has remained at the 2-3 percent level since December 2008.

The trend is expected to continue, with the central bank lowering the base rate for the first time in 15 months in August.

The current 2.25 percent rate marks the lowest level since July 2010.

The data showed that while households saw their interest profit rise by 12.4 trillion won during the nine-year span, their interest expenses increased by 25.5 trillion won in the cited period. (Yonhap)