Bank Mortgage Loans Increased by 5.8 Trillion Won in November... Household Loans Up by 5.4 Trillion Won

Increase in Mortgage Loans Continues
Growth Rate of Household Loans Narrows

Due to the government's strengthened household loan management measures, bank household loans increased by 5.4 trillion won last month, narrowing the growth compared to the previous month. However, the increase in mortgage loans expanded compared to the previous month, and the outstanding household loans also reached a record high of 1,091.9 trillion won, maintaining a high level.

According to the "November Financial Market Trends" announced by the Bank of Korea on the 13th, bank household loans (including policy mortgage loans) increased by 5.4 trillion won last month, a smaller increase compared to 6.7 trillion won in the previous month.

Despite a slowdown in demand for funds related to housing sales, mortgage loans increased from 5.7 trillion won to 5.8 trillion won due to expanded payment demand caused by an increase in move-in volume.

Yoon Ok-ja, Deputy Head of the Market General Team at the Bank of Korea's Financial Market Department, explained, "In the case of mortgage loans, the decline in housing sales transactions in September seems to have affected the slowdown in related fund demand. However, mortgage loans include not only loans derived from transactions of existing houses but also group loans for new apartment complex move-ins, interim payments, and reconstruction apartment relocations. The temporary expansion of group loans in November acted as a factor limiting the reduction in mortgage loan size."

On the other hand, other loans turned to a decrease of 300 billion won last month from an increase of 1 trillion won in October, as the temporary increase factor in the previous month disappeared amid the continued impact of high interest rates. In October, other loans temporarily increased due to consumer funds during holidays and funds related to public offering subscriptions.

Other loans, which had turned to an increase of 1 trillion won last month due to increased consumer funds during holidays and public offering subscription-related fund demand, decreased by 300 billion won, turning to a decline.

Bank corporate loans increased by 7.3 trillion won last month, narrowing the growth compared to 8.1 trillion won in the previous month. This was influenced by a slight slowdown in the increase of large corporate loans.

Large corporate loans increased by 1.5 trillion won, mainly for working capital, decreasing by 2.8 trillion won from 4.3 trillion won in the previous month.

Loans to small and medium-sized enterprises (SMEs) expanded from 3.8 trillion won to 5.8 trillion won, mainly for small and medium-sized corporations. The Bank of Korea expects steady demand for funds from SMEs.

Deputy Head Yoon said, "Bank household loans (including policy mortgage loans) saw a reduced increase as other loans turned to a decrease despite the continued rise in mortgage loans. This appears to reflect the impact of the government's strengthened household loan management measures."

A counter at a major commercial bank in Seoul on the 30th. Photo by Jinhyung Kang aymsdream@

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