Financial Services Commission: "Total Household Loans in All Financial Sectors Increased by 700 Billion KRW in August"

Increase in Mortgage Loans by 2.8 Trillion KRW
Decrease in Credit Loans and Others by 2.1 Trillion KRW

[Asia Economy Reporter Sim Nayoung] Household loans across the entire financial sector, including banks and the secondary financial sector, increased by 700 billion KRW last month.

According to the 'August Household Loan Trends' report by the Financial Services Commission and the Financial Supervisory Service on the 8th, compared to July, the increase in mortgage loans was 2.8 trillion KRW. Other loans, such as credit loans, decreased by 2.1 trillion KRW, resulting in a total household loan increase of 700 billion KRW. The banking sector saw an increase of 300 billion KRW, while the secondary financial sector increased by 400 billion KRW.

A financial authority official explained, "Despite sluggish housing sales, the demand for group loans and jeonse (key money deposit) loans continued, expanding the increase in mortgage loans."

Corporate loans have been rising for eight consecutive months, with the balance of corporate bank won-denominated loans reaching 1,146.1 trillion KRW at the end of August. This is an increase of 870 billion KRW in one month. The increase was the largest since statistics began in June 2009 for the month of August.

Loans to small and medium-sized enterprises increased by 5.8 trillion KRW, including 2.2 trillion KRW in loans to individual business owners. Loans to large corporations also increased by 2.9 trillion KRW.

The balance of bank deposits stood at 2,208.9 trillion KRW at the end of August, up 870 billion KRW from the end of July. Time deposits rose by 2.12 trillion KRW due to inflows of household and corporate funds following the rise in deposit interest rates. As funds moved to savings deposits, demand deposits decreased by 1.53 trillion KRW.

Deposits at asset management companies increased by 100 billion KRW during August. Due to the withdrawal of surplus government funds, money market funds (MMFs) decreased by 600 billion KRW, but other funds and bond-type funds saw inflows of 2 trillion KRW and 800 billion KRW, respectively.

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