Household and Corporate Loans Increased at All Five Major Banks

Household Loans Jump About 1 Trillion Won Compared to Last Month
Loans for Large, Medium, Small Businesses, and SOHO All on the Rise

Last month, household loans at the five major commercial banks increased by nearly 1 trillion won compared to the previous month, continuing the upward trend for the third consecutive month. Corporate loans, including large corporate loans, also expanded across the board.

According to the banking sector on the 1st, the outstanding household loans at KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup Banks totaled 679.2209 trillion won as of the end of last month. This is an increase of 975.5 billion won compared to 678.2454 trillion won in the previous month. The household loan balances at these banks have increased for three consecutive months following May and June. The increase has also been growing, with 143.1 billion won in May and 633.2 billion won in June.

The growth in household loans is attributed to an increase in mortgage loans. The outstanding mortgage loans at the five major commercial banks last month amounted to 512.8875 trillion won, up 1.4868 trillion won from 511.4007 trillion won in the previous month. A banking sector official explained, “The recent revival of the housing market has led to an increase in mortgage loans that exceeds the decline in unsecured loans, resulting in a rise in household loans.”

The outstanding balance of household unsecured loans recorded 108.6827 trillion won last month, continuing a decline for 1 year and 8 months since December 2021. The balances of jeonse loans and group loans also decreased compared to the previous month, standing at 122.9823 trillion won and 159.785 trillion won, respectively.

Corporate loans also increased across the board. The outstanding large corporate loans at these banks last month were 126.2095 trillion won, up 2.9979 trillion won from 123.2116 trillion won in the previous month. Loans to small and medium-sized enterprises also rose by 3.581 trillion won, from 609.1013 trillion won in June to 612.6823 trillion won in July. Loans to individual business owners increased from 315.3676 trillion won to 316.811 trillion won during the same period.

On the other hand, demand deposits sharply decreased. The outstanding demand deposits at the five major banks last month were 581.6415 trillion won, down 23.0338 trillion won from 604.6753 trillion won in June. Time deposits and installment savings increased compared to the previous month, standing at 832.9812 trillion won and 41.252 trillion won, respectively.

As the average loan interest rates in the banking sector have been rising for two consecutive months, a banner displaying mortgage loan and personal credit loan interest rates is hung on the exterior wall of a commercial bank in Seoul on the 31st. Photo by Kang Jin-hyung aymsdream@

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