Household Loans Rise Again... 5 Major Banks Increase by 5 Trillion Won in One Month

Household Loans Reach 703.23 Trillion KRW
Highest in 2 Years and 10 Months
Cause: Increase in Mortgage Loans

Household loans at the five major banks increased by more than 5 trillion won in just one month. Mortgage loans steadily rose, and credit loans showed an increasing trend for the second consecutive month.

According to the financial sector on the 3rd, the outstanding balance of household loans at the five major domestic commercial banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup Bank) stood at 703.2308 trillion won at the end of last month. This is an increase of 5.2278 trillion won from the previous month (698.003 trillion won). Household loans, which had been on the rise since May last year, turned to a decline in March for the first time in 11 months but increased again in April and May. The outstanding balance of household loans exceeding 700 trillion won is the first time in two years since May 2022.

The increase was also larger than the previous month (4.4346 trillion won), marking the biggest rise in 2 years and 10 months since July 2021 (6.2009 trillion won).

The reason for the increase in household loan balances is attributed to mortgage loans. Last month, the outstanding balance of mortgage loans was 546.306 trillion won, up 5.3157 trillion won from the previous month. Personal credit loans also increased for the second consecutive month. The outstanding balance of credit loans was 102.9924 trillion won at the end of last month, up 187.4 billion won from the previous month (102.805 trillion won). The outstanding balance of jeonse loans was 117.9827 trillion won, an increase of 63.8 billion won from the previous month (117.9189 trillion won).

The outstanding balance of corporate loans also continued to rise. The outstanding balance of corporate loans at the five major banks last month was 803.3231 trillion won, up 7.2776 trillion won from the previous month (796.0455 trillion won). This marks five consecutive months of increase.

Meanwhile, the total deposit balance at the five major banks was 1,987.5056 trillion won, an increase of 10.6692 trillion won from the previous month. The balance of time deposits recorded 889.7062 trillion won, up 16.8232 trillion won from the previous month. The balance of installment savings also increased by 1.0302 trillion won to 33.4832 trillion won. Demand deposits, including Money Market Deposit Accounts (MMDA), stood at 614.1055 trillion won, down 2.2316 trillion won from the previous month.

Sketch of a commercial bank ATM. Photo by Hyunmin Kim kimhyun81@

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