[Economic Outlook] Will the Fiscal Deficit Widen... Attention Also on the Rising Trend of Household Loans

MoEF to Announce October Fiscal Trends on 8th
BOK Releases Financial Market Trends and Monetary Credit Policy Report

[Image source=Yonhap News]

[Asia Economy Reporter Jang Sehee] This week, various economic indicators revealing the country's fiscal trends and the status of household and corporate loans will be released.

On the 8th, the Ministry of Economy and Finance will release the October fiscal trends report.

The fiscal trends report provides data on monthly revenues and expenditures, as well as the resulting national debt and fiscal conditions. Attention is focused on whether the deficit, which worsened in September, improves in the October fiscal trends.

September is typically a month with low tax revenue, and expenditures surged due to the 4th supplementary budget, causing the cumulative managed fiscal balance deficit to swell to 108.4 trillion won. National debt also reached a record high of 800.3 trillion won.

On the same day, Statistics Korea will release data titled "One-Person Households in Statistics." On the 9th, statistics on "Newlywed Couples in 2019" will be published, followed by "Social Trends in Korea 2020" on the 10th.

The Bank of Korea will announce the financial market trends statistics for November on the 9th. There is interest in whether the increase in household loans will continue.

As of the end of October, bank household loan balances stood at 968.5 trillion won, an increase of 10.6 trillion won compared to the end of September. This is the second-largest increase since the statistics began being compiled in 2004.

Among household loans, housing mortgage loans including jeonse (key money deposit) loans (balance of 709.4 trillion won) increased by 6.8 trillion won in one month.

Jeonse loans rose by 3 trillion won, maintaining a level above 3 trillion won for three consecutive months. Although banks have started managing the total volume of household loans, the upward trend in jeonse loans is expected to continue for some time.

Meanwhile, on the 10th, the Bank of Korea will submit the Monetary and Credit Policy Report to the National Assembly and announce trends in international finance and foreign exchange markets after November.