Bank Household Loans Decrease by 1.6 Trillion Won... "Impact of SKIET Margin Repayment"

The Bank of Korea to Announce 'Financial Market Trends in May' on the 10th

[Asia Economy Reporter Jang Sehee] In May, household loans from banks slightly decreased as the temporary surge factor from the previous month was resolved. This was due to the return of subscription deposits from the SK IE Technology (SKIET) IPO, which had gathered the highest-ever amount of deposits.

According to the 'Financial Market Trends in May 2021' report released by the Bank of Korea on the 10th, the outstanding balance of household loans from banks as of the end of May was 1,024.1 trillion won, down 1.6 trillion won from the end of April. The slight decrease was mainly centered on other loans, which mostly consist of unsecured loans.

First, the scale of other loans decreased by 5.5 trillion won due to the return of IPO subscription deposits at the beginning of the month. However, the decline was limited due to demand for funds related to housing transactions, stock investments, and seasonal factors. A Bank of Korea official stated, "Household loans slightly decreased as IPO subscription deposits were returned," adding, "However, the outstanding balance remains high at 1,024 trillion won."

The growth rate of mortgage loans slowed somewhat. Mortgage loans increased by 4 trillion won in May, which was lower compared to 5.7 trillion won in March and 4.2 trillion won in April. Corporate loans also continued to rise. Bank corporate loans (in Korean won) increased by 5.7 trillion won over the month, a smaller increase compared to 11.4 trillion won in April. In particular, loans to small and medium-sized enterprises increased by 6.5 trillion won in one month, mainly due to demand for COVID-19 related funds and financial support, accounting for most of the corporate loan growth.

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