Major South Korean Banks See Sharp Rise in Household Loans in July

Household borrowing at South Korea's five major lenders surged by 3.8 trillion won in July, driven by strong demand for mortgage and credit loans despite tight regulations.

Justin Tomlinson

Editor-in-Chief, Mora Discover

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Major South Korean Banks See Sharp Rise in Household Loans in July

Household loans extended by major South Korean banks rose sharply in July despite tight borrowing regulations, driven by a pickup in both mortgage and credit loans. Financial data released on Sunday showed that outstanding household loans at five major lenders stood at 778.8 trillion won ($538.6 billion) as of Thursday. This marked an increase of 3.8 trillion won from the previous month. The five major commercial institutions involved in the compiled data are KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and NH Nonghyup Bank.[1][2]

The growth in household debt was primarily driven by a rise in mortgage loans, which grew by 2.3 trillion won from a month earlier to reach 617.4 trillion won in July. This expansion represents the sharpest on-month gain for mortgage borrowing since August of last year. Market experts indicated that borrowing demand remained resilient amid surging housing prices in Seoul and other parts of the greater metropolitan area, despite ongoing regulatory restrictions on lending.[1][2]

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