Five Major Banks' Household Loans Rise for Five Consecutive Months... Mortgage Loans Increase by 2.8 Trillion Won

Impact of Housing Price Recovery
Household Credit Loans Decrease

On the 14th, in a real estate-dense shopping district in Songpa-gu, Seoul, where the decline in real estate prices and the transaction freeze phenomenon continue, apartment listings with market prices are posted. Photo by Kang Jin-hyung aymsdream@

The household loan balance of the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) has increased for five consecutive months. The cause was an increase of more than 2.8 trillion won in the balance of mortgage loans (hereinafter referred to as mortgage loans).

According to the five major banks on the 4th, the household loan balance at the end of September was 682.3294 trillion won, an increase of 1.5174 trillion won compared to the previous month (680.812 trillion won). The household loan balance has been on the rise for five consecutive months since May. From January last year to April this year, it had been declining for 16 consecutive months.

The biggest cause of the increase in household loans was mortgage loans. The total was 517.8588 trillion won, an increase of 2.8591 trillion won from the previous month. This is the largest increase this year. Above all, the recovery trend in housing prices had the greatest impact.

According to the 'KB Housing Market Review' released last month by KB Financial Group Management Research Institute, "While housing sale prices are continuing to recover nationwide, the number of regions where prices have turned upward is increasing," and "the price change rate of the top 50 apartments by total market value has expanded its month-on-month increase for four consecutive months."

It added, "In the metropolitan area, the price rise that started in Gangnam-gu, Seoul, has expanded to the areas north of the Han River, and in non-metropolitan areas, after Sejong, Gyeonggi and Daejeon have also turned to rising prices," and "the housing price outlook index exceeded 100 for the first time since October 2021, expanding expectations for housing market recovery."

On the other hand, personal credit loans decreased. At the end of September, it was 107.3409 trillion won, down 1.0762 trillion won from the previous month. During the same period, the balance of jeonse deposit loans was 122.1756 trillion won, a decrease of 27.84 billion won.

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