Top 5 Banks' Household Loans Increased by 7.2 Trillion KRW Last Month... Largest Rise in 3 Years and 3 Months

Housing Loan Debt Increases by 7.6 Trillion Won

As demand for loans for housing transactions increased, household loans at the five major banks saw the largest growth in 3 years and 3 months.

According to the financial sector on the 1st, the outstanding household loans at the five major banks (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup) amounted to 715.7383 trillion won as of the end of July. This is an increase of 7.166 trillion won compared to June (708.5723 trillion won). The increase continued for the fourth consecutive month and showed the largest growth since April 2021 (9.2266 trillion won) in 3 years and 3 months.

The scale of household loans increased as demand for mortgage loans rose. The outstanding mortgage loans in July were 559.7501 trillion won, up 7.5975 trillion won from the previous month (552.1526 trillion won). In the case of credit loans, the amount decreased by 17.13 billion won from 102.7781 trillion won to 102.6068 trillion won.

Corporate loans also continued to increase for seven consecutive months since January this year. The outstanding corporate loans amounted to 818.2285 trillion won, an increase of 6.8803 trillion won compared to June (811.3482 trillion won).

Time deposits at the five major banks reached 909.3403 trillion won, up 18.1879 trillion won from 891.1524 trillion won last month. Regular savings also increased by 1.1227 trillion won (from 34.6084 trillion won to 35.7311 trillion won).

Demand deposits, which are standby funds, decreased by 29.1395 trillion won during the same period, from 638.8317 trillion won to 609.6922 trillion won.

To slow down the increase in household loans, commercial banks are consecutively raising mortgage loan interest rates. On the 3rd, an interest rate notice was posted on the exterior wall of a bank in Namdaemun, Seoul. Photo by Jo Yongjun jun21@

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