February Household Loans in Financial Sector -5.4 Trillion Won... Mortgage and Credit Loans Continue to Decrease

Financial Sector Household Loans Continue Declining Trend Since Second Half of Last Year

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In February, household loans across the entire financial sector decreased by 5.4 trillion KRW. This represents a 1.3% decline compared to the same period last year, continuing the downward trend observed since the second half of last year.

According to the Financial Services Commission on the 9th, mortgage loans decreased for the second consecutive month compared to the previous month, and other loans also continued to decline. Both bank sector mortgage loans (-300 billion KRW) and secondary financial sector mortgage loans (-300 billion KRW) decreased.

Other loans, mainly credit loans (-2.5 trillion KRW), decreased by 4.8 trillion KRW, but the decline narrowed compared to the previous month (-7.1 trillion KRW).

Looking at both the banking sector and the secondary financial sector, household loans decreased in February. The banking sector recorded a decrease of 2.7 trillion KRW. Although policy mortgages (1 trillion KRW) and general individual mortgages (700 billion KRW) increased, loans for jeonse deposits (long-term rental deposits) decreased by 2.5 trillion KRW, leading to the first decline since statistics began in 2015.

Other loans decreased by 2.4 trillion KRW, mainly due to credit loans (-1.9 trillion KRW).

In the secondary financial sector, insurance (300 billion KRW) and savings banks (200 billion KRW) saw slight increases, but mutual finance (-2.7 trillion KRW) and credit specialized companies (-400 billion KRW) mainly contributed to a 2.7 trillion KRW decrease.

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