Korea’s household loan growth slows in November

[Photo by Yonhap]

Household loans extended by South Korean financial institutions rose by 2.6 trillion won ($1.97 billion) in November, down from 6.2 trillion won in the previous month, amid the government’s measures to contain rising household debt.

According to data released by the Financial Services Commission and the Financial Supervisory Service on Wednesday, household loans extended by financial institutions increased by 2.6 trillion won in November, slowing from 6.2 trillion won in October.

Mortgage loans rose by 5.6 trillion won during the period, rising from 5.2 trillion won in October, but the amount of total loans fell by 3 trillion won with the repayment of non-mortgage loans and deposit loans at mutual savings banks.

Specifically, household loans at banks increased by 5.4 trillion won in November, slowing from 6.7 trillion won in the previous month.

Bank mortgage loans rose by 5.7 trillion won. Other loans at banks, such as credit loans, fell by 300 billion won.

During the period, household loans from second-tier lenders fell by 2.8 trillion won compared with a decline of 500 billion won in October.

Household loans at mutual savings banks dipped by 2.8 trillion won, while those at savings banks and specialized credit companies fell by 100 billion won and 30 billion won, respectively.