Household Loans in the Financial Sector Increased by 2.8 Trillion Won Last Month... Growth Rate Significantly Slowed Down

[Asia Economy Reporter Kim Hyo-jin] It has been revealed that the increase in household loans in the financial sector significantly slowed down in April.

According to the 'Household Loan Trends in April 2020' data released by the Financial Services Commission on the 12th, the total increase in household loans across all financial sectors last month was 2.8 trillion KRW, which is 2.3 trillion KRW less than the increase in the same month last year (5.1 trillion KRW increase). Compared to the previous month (9.3 trillion KRW increase), the increase shrank by 6.5 trillion KRW.

Household loans in the banking sector increased by 4.9 trillion KRW. This is 400 billion KRW more than the increase in the same month last year (4.5 trillion KRW), but 4.7 trillion KRW less compared to the increase in the previous month (9.6 trillion KRW).

While the increase in mortgage loans expanded due to jeonse loans and others, credit loans decreased due to the supply of alternative funds such as low-interest loans related to the novel coronavirus infection (COVID-19).

Household loans in the secondary financial sector decreased by 2.1 trillion KRW last month. This is 2.7 trillion KRW less than the increase in the same month last year (600 billion KRW increase). Compared to the previous month (300 billion KRW decrease), the decrease shrank by 1.8 trillion KRW.

In the secondary financial sector as well, the overall increase shrank due to a decrease in demand for credit loans following the supply of alternative funds.

The total mortgage loans in the entire financial sector increased by 4.7 trillion KRW. This is 2.4 trillion KRW more than the increase in the same month last year (2.3 trillion KRW increase), but 500 billion KRW less compared to the previous month (5.2 trillion KRW increase).

In the banking sector, mortgage loans increased by 4.9 trillion KRW due to increases in general mortgage loans, jeonse deposit loans, and group loans, whereas in the secondary financial sector, they decreased by 200 billion KRW due to refinancing effects such as the Saemin-type Safe Conversion Loan.

Other loans such as credit loans and card loans across the financial sector decreased by 2 trillion KRW. This is 4.8 trillion KRW lower than the increase in the same month last year (2.8 trillion KRW increase) and 6 trillion KRW less compared to the previous month (4 trillion KRW increase). In the banking sector, loans decreased by 100 billion KRW, and in the secondary financial sector, they decreased by 1.9 trillion KRW.

A financial authority official stated, "We plan to closely monitor loan demand and household loan trends resulting from COVID-19."

This content was produced with the assistance of AI translation services.