"Pulling Even Personal Loans for Real Estate Transactions"... Household Debt Hits Record High of 1,682 Trillion in Q3

Bank of Korea to Announce 'Q3 Household Credit (Preliminary)' on 24th

On the 19th, when the government announced its 24th real estate policy, posters criticizing the government's real estate policy and listing information were posted at a real estate agency in Songpa-gu, Seoul. Photo by Moon Honam munonam@

[Asia Economy Reporter Jang Sehee] Household debt in South Korea, including mortgage loans and credit loans, has once again reached an all-time high.

According to the "3rd Quarter Household Credit (Provisional)" report released by the Bank of Korea, household debt at the end of the third quarter this year reached 1,682.1 trillion won, an increase of 44.9 trillion won from the end of the previous quarter, marking a record high. Household debt has increased for four consecutive quarters, with the third quarter's debt rising by 15.8 trillion won compared to the same period last year.

Household loans, which make up the majority of household debt, also hit a record high of 1,585.5 trillion won, increasing by 24.2 trillion won, showing an expanded growth compared to the previous quarter.

Among household loans, mortgage loans increased by 17.4 trillion won from the end of the previous quarter, reaching 890.4 trillion won, driven by continued demand for housing funds such as jeonse deposits. In this regard, the Bank of Korea analyzed that "the increase was expanded due to the rise in housing sales and jeonse transaction volumes."

Other loans, including credit loans, also rose by 22.1 trillion won from the end of the previous quarter, reaching 695.2 trillion won. This is the highest level since statistics compilation began in 2003.

The Bank of Korea explained that the increase in other loans was also driven by rising demand for housing funds and stock investment funds.

The increase in sales credit also expanded in the third quarter. The balance of sales credit was 96.6 trillion won, up 5.4 trillion won from the end of the previous quarter.