Household Loans in August Increase by 6.2 Trillion Won Centered on Mortgage Loans... 5 Consecutive Months

Financial Sector Mortgage Loans Increase by 6.6 Trillion Won in One Month

In August, household loans across the entire financial sector showed a continuous increase for the fifth consecutive month, mainly driven by mortgage loans.

View of Yeouido Sibeom Apartments from the 63 Building Observatory. Photo by Hyunmin Kim kimhyun81@

The Financial Services Commission announced on the 13th that household loans across the entire financial sector increased by 6.2 trillion KRW compared to the previous month in August. This continued the upward trend for five consecutive months following April (1.8 trillion KRW), May (3.6 trillion KRW), June (6.4 trillion KRW), and July (5.6 trillion KRW).

By loan category, the increase in mortgage loans was notable. Mortgage loans decreased by 400 billion KRW in the secondary financial sector but increased by 7 trillion KRW in the banking sector, resulting in an overall increase of 6.6 trillion KRW. Other loans decreased by 400 billion KRW in total, with reductions in both the banking and secondary financial sectors.

By financial sector, household loans in the banking sector increased, while those in the secondary financial sector showed a contraction. In the banking sector, jeonse loans decreased by 100 billion KRW, but general individual mortgage loans (4.1 trillion KRW), policy mortgages (2.7 trillion KRW), and group loans (200 billion KRW) all increased, resulting in a total increase of 6.9 trillion KRW. Other loans decreased by 100 billion KRW due to a reduced increase in unsecured loans.

Household loans in the secondary financial sector decreased by a total of 700 billion KRW, with the contraction widening. Although insurance companies (300 billion KRW) and specialized credit finance companies (600 billion KRW) saw increases, mutual finance and savings banks decreased by 1.5 trillion KRW and 100 billion KRW respectively, leading to the overall decline.

The financial authorities stated, "In August, household loans continue to increase, mainly driven by mortgage loans in the banking sector," and added, "We plan to manage household loans stably in the second half of the year by promoting credit screening practices centered on repayment ability, conducting on-site inspections of banking sector household loans, and identifying and implementing necessary institutional improvements as needed."

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