Household Loans Increase Mainly Among High Credit Borrowers... Up 25% in 5 Years

High-Credit Household Loan Balances Increase by 25.2% Over 5 Years
Mid-Credit Down 7.2%, Low-Credit Down 20.2%

Recent analysis shows that household loans are increasing mainly among borrowers with high credit scores.

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

According to data submitted by the Bank of Korea to Park Seong-hoon, a member of the National Assembly's Planning and Finance Committee from the People Power Party, the balance of household loans for high-credit borrowers with credit scores of 840 or above was 1,458.9 trillion KRW at the end of the first half of this year.

This figure is significantly higher compared to the household loan balances of medium-credit borrowers (credit scores 665?839) at 330.9 trillion KRW and low-credit borrowers (664 or below) at 69.5 trillion KRW.

The higher the credit score of the borrower, the steeper the increase in household loans.

The balance of household loans for high-credit borrowers increased by 25.2%, from 1,165.5 trillion KRW at the end of the first half of 2019 to 1,458.9 trillion KRW at the end of the first half of this year.

In contrast, during the same period, the balance of household loans for medium-credit borrowers decreased by 7.2%, from 356.6 trillion KRW to 330.9 trillion KRW. The balance for low-credit borrowers also declined by 20.2%, from 87.1 trillion KRW to 69.5 trillion KRW.

The average household loan balance per person as of the end of the first half of this year was 110.83 million KRW for high-credit borrowers, 67.49 million KRW for medium-credit borrowers, and 42.04 million KRW for low-credit borrowers, showing a significant gap.

Meanwhile, by age group, the household loan balance was highest among those in their 40s at 536.2 trillion KRW as of the end of the first half of this year. This was followed by those aged 30 and below at 496.3 trillion KRW, those in their 50s at 457 trillion KRW, and those aged 60 and above at 369.7 trillion KRW.

The average household loan balance per person was highest for those in their 40s at 115.73 million KRW, followed by those in their 50s at 97.47 million KRW, those aged 60 and above at 86.14 million KRW, and those aged 30 and below at 81.28 million KRW.

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