Household Loans Increase After 5 Months... Mortgage Loans Up, Credit Loans Down

Bank Household Loans Increase by 1.2 Trillion Won from Previous Month
Mortgage Loans Up by 2.1 Trillion Won, Credit Loans Down by 0.9 Trillion Won
"Impact of Strengthened Bank Operations"

[Asia Economy Reporter Minwoo Lee] Household loans in the banking sector, which had been declining since the end of last year due to rising interest rates and regulatory loan restrictions, increased again after five months. This is attributed to banks strengthening their loan operations. In particular, the increase in loans from internet-only banks played a significant role.

According to the Bank of Korea on the 14th, the outstanding household loans in the banking sector at the end of last month amounted to 1,060.2 trillion won. This is an increase of 1.2 trillion won compared to the end of the previous month. The decline that continued for four consecutive months from December last year (-200 billion won), January (-500 billion won), February (-200 billion won), and March (-1 trillion won) has reversed. It rebounded after four consecutive months of decline.

By loan type, the outstanding balance of mortgage loans, including jeonse deposit loans, was 786.8 trillion won, an increase of 2.1 trillion won compared to the previous month. The increase was the same as in March. Among the increased mortgage loans, jeonse deposit loans accounted for more than half, totaling 1.1 trillion won.

On the other hand, other loans such as unsecured loans decreased by 900 billion won from the previous month to 272.1 trillion won. This marks a decline for five consecutive months since December last year. However, the decrease was significantly smaller compared to the previous month (-3.1 trillion won). This is attributed to banks consecutively raising the limits on overdraft accounts and increasing preferential interest rates.

During the same period, household loans in the secondary financial sector also increased by 100 billion won. Although mutual finance decreased by 1 trillion won, insurance (200 billion won), savings banks (300 billion won), and specialized credit finance companies (600 billion won) all increased, contributing to the overall rise.

Meanwhile, corporate loans in banks showed an upward trend for the fourth consecutive month, increasing by 12.1 trillion won last month alone.

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