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Banks' household lending rises sharply in July

All News 09:49 August 05, 2018

SEOUL, Aug. 5 (Yonhap) -- South Korea's household lending by local banks rose sharply last month as a property market boom continued in the country, industry data showed Sunday.

Outstanding household loans from five lenders -- Kookmin Bank, Shinhan Bank, Woori Bank, KEB Hana Bank and Nonghyup Bank -- came to a combined 547.7 trillion won (US$485.5 billion) as of end-July, up 3.15 trillion won from a month earlier, according to the data.

From a year earlier, the total rose by 37.92 trillion won.

Home-backed mortgages climbed by 2.4 trillion won on-month to 389.4 trillion won last month, marking the sharpest on-month gain in four months.

Meanwhile, non-mortgage loans, including lending through overdraft lines of credit, gained 1.2 trillion won on-month to 102.6 trillion won in July. The on-month increase was the largest since November last year when the figure expanded 1.78 trillion won.

Market watchers said the still red-hot housing market stirred up demand for money to buy houses despite a series of government-led measures to raise borrowing costs and tighten mortgage rules for owners of multiple homes.

In particular, housing prices in Seoul and its surrounding areas are leading the overall real estate boom.

Separate data showed that apartment prices in Seoul increased at a five-month high of 0.24 percent last week from seven days earlier, while an index measuring the frequency of housing transactions also hit a five-month high of 25.4 in Seoul.

Banks' household lending rises sharply in July - 1


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