Household Loans Increased by 6.2 Trillion Won in August... Growth Rate Slows Down

On the 8th, the Bank of Korea announced the 'Financial Market Trends in August 2021'

[Asia Economy Reporter Jang Sehee] Last month, bank household loans increased by 6.2 trillion won. However, the increase in unsecured loans narrowed as funds used for public offering subscriptions were withdrawn.

According to the "Financial Market Trends in August 2021" released by the Bank of Korea on the 8th, bank household loans surged by 6.2 trillion won in August. This is a smaller increase compared to July (9.7 trillion won).

Mortgage loans increased by 5.9 trillion won, which is 100 billion won less than July's 6 trillion won. A Bank of Korea official analyzed, "Demand for funds related to housing sales and jeonse (long-term lease) continues, and group loans are also being handled, resulting in an increase similar to the previous month."

Other loans, mostly consisting of unsecured loans, increased by 300 billion won, significantly shrinking compared to the 3.6 trillion won increase in July.

Choo Myung-sam, head of the Financial Market General Team at the Financial Market Department, stated, "It appears that the demand for funds related to public offering subscriptions had a significant impact on other loans in August."

Although the loan increase has slowed, the upward trend in loans continues. Choo explained, "The increase in household loans is ongoing," adding, "The narrowing of the increase is due to temporary factors such as public offering subscriptions."

Meanwhile, the Bank of Korea expects that if loan interest rates rise by 1%, the interest burden on household loans will increase by about 12 trillion won.

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