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Household loans fall for 5 straight months: bank data

All News 18:05 June 02, 2022

SEOUL, June 2 (Yonhap) -- The amount of household loans extended by major South Korean banks fell for five straight months, bank data showed Thursday.

The combined outstanding loans of the country's five first-tier lenders, including KB Kookmin, Shinhan, Hana, NH and Woori, totaled 701 trillion won (US$560 billion) in end-May, down 1.33 trillion won from a month earlier, the banks' data showed.

Their monthly balance of household loans has dropped since January. The tally showed speedier contraction in end-May, compared with the 802 billion won on-year drop in end-April.

"We are seeing an inflow of cash that was originally invested in securities and cryptocurrencies. Many customers prefer to make early repayments of their debts," a bank source said. "The real estate market also seems to have lost steam, getting people to take out fewer loans," the source added.

Household loans fall for 5 straight months: bank data - 1

Of the total household loans, the combined outstanding household mortgages extended by the five banks had totaled 506.7 trillion won as of end-May, down 524.5 billion won from a month earlier, data showed. The monthly mortgage balance had shrunk every month since March.

The combined outstanding balance of credit loans had stood at 131.8 trillion won as of end-May, down 661.3 billion won from a month ago. The tally had contracted for the six straight months since December 2021.

jwc@yna.co.kr
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