Household Loans in Financial Sector Increase by 15.2 Trillion KRW in July... Impact of 'KakaoBank IPO'

Financial Services Commission Announces Household Loan Trends for July 2021

[Image source=Yonhap News]

[Asia Economy Reporter Jin-ho Kim] Last month, household loans across all financial sectors increased by more than 15 trillion won, influenced by KakaoBank's public offering subscription and other factors.

According to the 'Household Loan Trends for July 2021' announced by the Financial Services Commission on the 11th, household loans across all financial sectors increased by 15.2 trillion won last month.

The increase in household loans was largely due to a significant rise in other loans such as unsecured loans following public offering subscriptions by KakaoBank and others. Mortgage loans also saw an expanded increase compared to the previous month, mainly driven by jeonse loans and group loans.

Last month, other unsecured loans increased by 7.7 trillion won, showing a larger increase compared to the previous month (3.9 trillion won). Unsecured loans accounted for 4 trillion won, while installment loans and card loans reached 2.1 trillion won.

Mortgage loans increased by 7.5 trillion won last month, up 1.1 trillion won from the previous month (6.4 trillion won). The Financial Services Commission analyzed this as a continued effect of jeonse loans and group loans in the banking sector.

By financial sector, household loans in the banking sector increased by 9.7 trillion won last month. Household loans in the secondary financial sector also rose by 5.6 trillion won.

The Financial Services Commission analyzed that the increase in household loans across all financial sectors last month was due to the schedule of public offering subscriptions and continued demand for jeonse funds, resulting in a larger increase compared to the previous month. However, it explained that the deposit refunds concentrated at the end of July led to a sharp reduction in household loan balances in the first week of August.

A Financial Services Commission official stated, "We will closely monitor household loan growth this year with a target increase rate of 5-6% to ensure that household loans do not act as a potential risk factor for our economy."

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