March Household Loans in Financial Sector Increase by 9.1 Trillion Won... Growth Slows Due to Housing Transaction Decline

Mortgage Loans Still Showing High Growth Compared to Pre-COVID-19
Credit Loans Slightly Increasing Amid Decline in Stock Investment Demand
Banks Increased by 6.5 Trillion Won... 3.1 Trillion Won Less Than a Year Ago
Financial Authorities: "Careful Management to Prevent Burden on Low-Income and Real Demand Borrowers"

[Asia Economy Reporter Kwangho Lee] Last month, the increase in household loans across all financial sectors slightly narrowed compared to the previous month due to a slowdown in housing transactions and a decrease in stock investment demand.

According to the 'Household Loan Trends for March 2021' announced by the Financial Services Commission on the 14th, household loans across all financial sectors increased by 9.1 trillion KRW compared to the end of February.

The increase was 600 billion KRW less than the previous month (9.7 trillion KRW) and 1.3 trillion KRW less than the same month last year (10.4 trillion KRW).

By sector, bank household loans increased by 6.5 trillion KRW last month. This was 200 billion KRW less than the previous month (6.7 trillion KRW) and 3.1 trillion KRW less than the same month last year (9.6 trillion KRW).

Household loans in the secondary financial sector increased by 2.6 trillion KRW. Although this was 400 billion KRW less than the previous month (3 trillion KRW), it expanded by 3 trillion KRW compared to the same month last year (-400 billion KRW).

By loan type, housing mortgage loans across all financial sectors increased by 6.5 trillion KRW last month, which was 1.3 trillion KRW less than the previous month (7.8 trillion KRW) but 1.3 trillion KRW more than the same month last year (5.2 trillion KRW).

Among these, bank mortgage loans increased by 2.8 trillion KRW due to increases in jeonse deposit loans, general mortgage loans, and group loans. This was 600 billion KRW less than the previous month (3.4 trillion KRW).

However, due to rising housing prices, the level remains high compared to last year.

Credit loans increased by 900 billion KRW last month, expanding by 200 billion KRW compared to the previous month (700 billion KRW).

Other loans increased by 2.6 trillion KRW, significantly narrowing compared to the same month last year (3.9 trillion KRW).

This year, credit loans have shown a significant reduction in the increase compared to the end of last year due to active management efforts by financial institutions and decreased demand for stock investments.

The Financial Services Commission stated, "We will closely monitor household loan trends and support a smooth landing to ensure that household debt does not act as a risk factor for our economy."

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