Household Loans Increased by 2.6 Trillion Won in November... Growth Slows Compared to October

Increase in Mortgage Loans Expands
Financial Authorities: "Policy Loans Increasing Mainly in Group Loans"

On the 21st, a notice about personal credit loan interest rates is posted at a commercial bank in Seoul. Photo by Kang Jin-hyung aymsdream@

In November, household loans across the entire financial sector, including banks and the secondary financial sector, increased by 2.6 trillion KRW compared to the previous month.

According to the 'Household Loan Trends' announced on the 13th by the Financial Services Commission and the Financial Supervisory Service, household loans have increased for eight consecutive months. However, the increase was 3.6 trillion KRW less than in October (6.2 trillion KRW).

Meanwhile, the increase in mortgage loans grew. Last month, mortgage loans rose by 5.6 trillion KRW, which is 400 billion KRW more than in October (5.2 trillion KRW).

On the other hand, other loans such as credit loans, which had increased by 1 trillion KRW in October, decreased. Mainly non-housing collateral loans and deposit-secured loans in the mutual finance sector decreased by 3 trillion KRW last month.

By sector, bank household loans increased by 5.4 trillion KRW in November, a smaller increase compared to October (6.7 trillion KRW).

The financial authorities stated, "Bank household loans increased mainly due to policy loans for the homeless and group loans for actual demand borrowers."

In the secondary financial sector, loans decreased by 2.8 trillion KRW, a larger decline compared to the previous month (-500 billion KRW).

A financial authority official explained, "The increase in household loans in November significantly narrowed compared to the previous month due to the slowdown in the increase of bank mortgage loans (compared to June-September)." They added, "We plan to introduce a variable interest rate stress total debt service ratio (DSR) and improve deficiencies found during on-site inspections of bank household loans."

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