Mortgage loans drive up South Korean banks’ household loans in June

They also set a fresh record for half-year increase in household loan value.

South Korean bank’s household loans totalled $896b (KRW1,030t) as of end-June, KRW6.3t higher than a month earlier, thanks to a surge in mortgage loans, according to data from the Bank of Korea (BoK).

This offset the one-off decline from the previous month, reports Yonhap. In May, banks recorded a $1.3b (KRW1.6t) tumble, which was blamed on repayments of loans by customers after the initial public offering of battery maker SK IE Technology. 

A large number of bank customers took out loans from local banks to apply for SK IE Technology's IPO subscription.

The central bank said June's growth is mainly thanks to a surge in mortgage loans. Mortgage loans expanded by about $4.3b (KRW5t) to about $650b (KRW752.2t) in June, extending the previous month’s $3.5b (KRW4t) increase. 

Unsecured and other non-mortgage loans grew by $1.13b (KRW1.3t) over the same period, reversing the $4.8t (KRW5.5t) decline in May.

For the first half of the year, the local bank’s household loans hit a fresh record in terms of first-half increase as total loans soared by over $36.3b (KRW41.6t). This is the largest first-half increase since data tracking began in 2004, according to the BoK.

(KRW1 = US$0.00087)

Follow the link for more news on

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

Entrepreneurship remains a pipedream for many Filipinos
Enterprisers struggle with cumbersome loan requirements and high collateral.
Philippine central bank eyes AI rules for banks
Artificial intelligence should not diminish banks’ responsibility to uphold data privacy.
Banking Technology
Westpac appoints Kate Dee as chief people officer
She has been the chief people officer of Bupa Asia Pacific since 2018.
Retail Banking
SMBC inks MOU to explore commercialization of stablecoins
They will explore technical, regulatory, and market infrastructure requirements for it.

Exclusives

Entrepreneurship remains a pipedream for many Filipinos
Enterprisers struggle with cumbersome loan requirements and high collateral.
Philippine central bank eyes AI rules for banks
Artificial intelligence should not diminish banks’ responsibility to uphold data privacy.
Banking Technology
RCBC boosts rural presence with ATM Go
The service, which allows cardless transfers, is now available in all Philippine cities.
BCA superapp drives digital transaction growth
Inter-account transfers were the most widely used service, followed by virtual payments.