Household Loans Increased for 8 Consecutive Months

Balance of 5 Major Commercial Banks 692 Trillion
Mortgage Loans Increased but Credit Loans Decreased
Monthly Growth Rate Slightly Reduced

Household loans at major banks have increased for eight consecutive months, but the rate of growth has somewhat slowed.

According to the financial sector on the 2nd, the outstanding balance of household loans at the five major domestic commercial banks (KB, Shinhan, Hana, Woori, NH Nonghyup) as of the end of last month was 69,240.94 billion KRW, up 0.29% from the previous month.

Thus, household loans at the five major banks showed an increasing trend for eight consecutive months. However, the increase amount (2.0238 trillion KRW) was less than half of the previous month's (4.3737 trillion KRW), indicating a noticeable slowdown in the pace of household loan growth.

By category, mortgage loans increased by 0.7% (3.6699 trillion KRW) from the previous month to 52,989.22 billion KRW. Group loans also rose by 1.02% (1.6412 trillion KRW) to 16,210.75 billion KRW. On the other hand, jeonse deposit loans and credit loans decreased by 0.25% and 1.21%, respectively, to about 12.1 trillion KRW and about 10.6 trillion KRW, pulling down the overall household loan growth.

Regarding corporate loans, the outstanding balance of large corporate loans was 13,642.84 billion KRW, down 1.36% (1.8835 trillion KRW) from the previous month, while loans to small and medium-sized enterprises increased by 0.4% (272.6 billion KRW) to 63,088.55 billion KRW. Loans to individual business owners decreased by 0.24% (774.7 billion KRW) to 31,949.36 billion KRW.

Meanwhile, total deposits at the five major banks decreased by 1.15% (22.6142 trillion KRW) to 195,137.53 billion KRW. Among the reduced deposit balances, the largest portion was due to a decrease in time deposits (19.4412 trillion KRW).

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