Household Loans Increased by 6.5 Trillion KRW in September

On the 13th, the Bank of Korea Announces 'Financial Market Trends for September 2021'

[Asia Economy Reporter Jang Sehee] In September, bank household loans increased by 6.5 trillion KRW. Despite strengthened loan regulations, the increase was similar to the previous month.

According to the Bank of Korea's 'Financial Market Trends in September 2021' released on the 13th, as of the end of September, the outstanding household loans in the banking sector amounted to 1,052.7 trillion KRW, an increase of 6.5 trillion KRW compared to the previous month. This was the second largest increase since statistics began in 2004. The increase was slightly larger than the previous month (6.1 trillion KRW).

Park Seongjin, Deputy Head of the Market General Team at the Bank of Korea's Financial Market Department, said, "The demand for funds related to housing sales and jeonse (long-term lease) continued, resulting in an increase similar to the previous month. In the case of other loans, there was a slight increase in September due to a base effect caused by repayments of funds for public offering subscription implemented in August."

Looking at the changes in household loans by type, housing mortgage loans including jeonse loans (outstanding balance of 769.8 trillion KRW) increased by 5.7 trillion KRW in one month.

Among the increased housing mortgage loans of 5.7 trillion KRW, jeonse loans accounted for 2.5 trillion KRW. The increase in jeonse loans slightly decreased compared to July (2.8 trillion KRW) and August (2.8 trillion KRW).

In September, other loans such as general credit loans increased by 800 billion KRW. Although the increase was larger than in August (300 billion KRW), it was smaller compared to July (3.6 trillion KRW). In August, the return of public offering subscription funds caused the unusually small increase in other loans.

Regarding future household loan trends, Deputy Head Park said, "The trend will vary depending on the intensity of household loan management measures by the government and banks. However, since the demand for household loans remains at a high level, it is necessary to observe further whether the increase will subside."

Meanwhile, as of the end of September, the outstanding bank won-denominated loans to corporations amounted to 1,049 trillion KRW, an increase of 7.7 trillion KRW compared to August. Although the monthly increase was smaller than August (7.9 trillion KRW), it was the largest increase since related statistics began in June 2009.

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