Gwangju and Jeonnam Store Debts Increased in January... Nearly Doubled

[Asia Economy Honam Reporting Headquarters Reporter Park Jin-hyung] Household and corporate debt in the Gwangju and Jeonnam regions increased by more than 1 trillion won in January alone.

According to the regional financial institution loan and deposit trends announced by the Bank of Korea Gwangju-Jeonnam Headquarters on the 21st, the total amount of regional loans (credit) increased by 1.1975 trillion won in January, nearly doubling the previous month's increase of 606.1 billion won with an additional 591.4 billion won.

By financial institution, deposit banks centered on commercial banks increased by 667.8 billion won, while non-bank deposit-taking institutions, known as the secondary financial sector such as mutual finance, increased by 529.8 billion won.

Loans from deposit banks saw a sharp increase from -7.9 billion won to 667.8 billion won, driven by a significant rise in loans to small and medium-sized enterprises (SMEs) due to VAT payment demands and other factors.

Loans borrowed by SMEs accounted for 600.3 billion won of corporate loans.

Non-bank loans increased by about 200 billion won in corporate loans (from 427.6 billion won to 624.6 billion won), but household loans decreased (from 168.9 billion won to -129.3 billion won), reducing the overall increase from 614.1 billion won to 529.8 billion won by about 80 billion won.

On a cumulative basis, the outstanding loan balance reached 74.8008 trillion won for deposit banks and 52.8146 trillion won for the non-bank sector, totaling 127.6154 trillion won.

The regional deposit balance was recorded at 59.1059 trillion won for deposit banks and 91.6796 trillion won for the non-bank sector, totaling 150.7855 trillion won.