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S. Korean banks' household lending slows in January

Finance 13:39 February 06, 2019

SEOUL, Feb. 6 (Yonhap) -- South Korea's major banks saw the growth pace of their household lending slow down in January due to marginal growth in mortgage loans, industry data showed Wednesday.

The nation's five major lenders -- KB Kookmin, Shinhan, Woori, KEB Hana and Nonghyup -- had 571.38 trillion won (US$511 billion) in outstanding household loans as of end-January, up 1.02 trillion won from the previous month.

The on-month gain is the smallest since March 2017, when bank lending rose 340 billion won.

The lackluster growth was largely due to a slowdown in home-backed mortgages, which climbed 2.37 trillion won on-month to 407.48 trillion won last month, narrowing from over 4 trillion won on-month gains in November and December.

Experts said tough government measures to cool the overheating housing market are having an impact on the banking industry. In September, the government unveiled a set of measures to slap heavier taxes on owners of high-value houses and multiple homes.

Apartment prices in Seoul have been falling following the government's real estate measures announced on September 13, 2018. (Yonhap)


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