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Mortgage loans up 13 pct in Sept. on increased home transactions

All News 16:59 October 05, 2016

SEOUL, Oct. 5 (Yonhap) -- South Korea's mortgage loans rose 13 percent from a year earlier in September on increased home transactions and increase in housing prices, bank data showed Wednesday.

The accumulated mortgages rolled out by six major lenders -- KB Kookmin Bank, Shinhan Bank, Woori Bank, KEB Hana Bank, NH Bank and the Industrial Bank of Korea -- stood at 374.6 trillion won (US$336 billion) in September, compared with 332.4 trillion won a year earlier, according to the data.

Mortgage loans have been on the rise in recent months as the number of home sales and house prices went up.

The country's household debt reached an all-time high of 1,257.3 trillion won as of end-June due to record-low interest rates and strong demand for new apartments. It's one of the highest household debt levels in the world compared with income levels.

Last month, South Korea's financial authorities asked banks to submit measures on how to manage risks on household debt.


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