Five Major Banks' Household Loans Increase for Two Consecutive Months

Real Estate Recovery... Housing Loans Increase by 1.7 Trillion Won
Loans for Large and Small-Medium Enterprises Also Continue to Rise

As the real estate market recovers, demand for mortgage loans has increased, leading to a consecutive two-month rise in household loans at major commercial banks.

According to the financial sector on the 3rd, the outstanding balance of household loans at the five major commercial banks?KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup?stood at 678.2454 trillion won last month, up 63.32 billion won from the previous month (677.6122 trillion won). The outstanding balance of household loans at these banks returned to an upward trend in May for the first time in one year and five months, and has increased for two consecutive months. The increase was also larger than the 14.31 billion won recorded in May.

This is due to the increase in mortgage loans. Last month, the outstanding balance of mortgage loans at the five banks rose by 1.7245 trillion won to 511.4007 trillion won from 509.6762 trillion won the previous month. During the same period, household credit loans decreased from 109.6731 trillion won to 108.9289 trillion won, but the increase in mortgage loans offset this decline, resulting in an overall increase in household loans.

A representative from a commercial bank explained, “Household loans increased for two consecutive months as mortgage loans, including jeonse loans, rose more than the decline in unsecured loans.”

Corporate loans also increased. Large corporate loans rose from 118.3492 trillion won in May to 123.2116 trillion won in June, and small and medium-sized enterprise loans jumped from 608.6395 trillion won to 609.1013 trillion won during the same period. Loans to individual business owners also increased from 315.0753 trillion won to 315.3676 trillion won.

Deposits also grew. The outstanding balance of time deposits at the five major banks increased by 4.6827 trillion won to 822.2742 trillion won last month from 817.5915 trillion won the previous month, and installment savings rose from 39.042 trillion won to 40.0841 trillion won. Demand deposits also increased by 19.2207 trillion won to 604.6753 trillion won last month compared to the previous month.

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