Rent demand to challenge Korean banks in keeping household debt in check

Pulse 2022. 1. 17. 14:36
글자크기 설정 파란원을 좌우로 움직이시면 글자크기가 변경 됩니다.

이 글자크기로 변경됩니다.

(예시) 가장 빠른 뉴스가 있고 다양한 정보, 쌍방향 소통이 숨쉬는 다음뉴스를 만나보세요. 다음뉴스는 국내외 주요이슈와 실시간 속보, 문화생활 및 다양한 분야의 뉴스를 입체적으로 전달하고 있습니다.

[Photo by Han Joo-hyung]
The share of leveraged long-term housing lease in household loans surged to more than 40 percent last year amid soaring rent prices due to shortage from jump in housing value and taxation in South Korea, adding to ballooning household debt.

According to the Financial Supervisory Service on Monday, bank loans to finance jeonse – Korea’s unique rent system that requires lump-sum deposit for leasing for minimum two years – totaled 29.5 trillion won ($245 billion), down from the previous year's 33.7 trillion won.

But the share against total household debt of 71.6 trillion won at banks rose to 41.2 percent last year from 33.5 percent in 2020.

Lending for jeonse has been on the rise despite containment in mortgage loans for new purchases.

Annual gains in loans for jeonse that stayed around 1 trillion won until 2017 widened to 2 trillion won in 2018 and hit 3.7 trillion won in 2020. They were reduced to 1.7 trillion won as of November in line with regulations on household debt.

Rent demand is expected to influence banks under watch to keep household debt increase in check this year.

[ⓒ Maeil Business Newspaper &, All rights reserved]

Copyright © 매일경제 & 무단 전재, 재배포 및 AI학습 이용 금지

이 기사에 대해 어떻게 생각하시나요?