Five Major Banks See Household Loans Decrease by 3 Trillion Won Last Month

Decline in Mortgage and Jeonse Loans
Increase in Time Deposits and Demand Deposits

Due to high interest rates and the ongoing economic downturn, household loans at the five major commercial banks decreased by more than 3 trillion won last month.

According to the financial sector on the 2nd, the outstanding household loans at the five major commercial banks?KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup?stood at 685.4506 trillion won last month, down 3.1972 trillion won from the previous month (688.6478 trillion won).

Looking at the detailed items, household credit loans last month amounted to 113.4865 trillion won, a decrease of 2.1382 trillion won from January's 115.6247 trillion won. This is interpreted as an effect of increased loan repayments due to interest burdens, while new loans declined. As the real estate market froze, mortgage loans also shrank from 513.3577 trillion won to 512.7857 trillion won, and jeonse deposit loans contracted by 1.903 trillion won (from 130.4182 trillion won to 128.5152 trillion won).

On the other hand, corporate loans showed an increasing trend. Outstanding loans to large corporations last month were 111.0558 trillion won, up 1.5727 trillion won from the previous month (109.4832 trillion won), and loans to small and medium-sized enterprises also increased by 1.7467 trillion won (from 598.1211 trillion won to 599.8678 trillion won).

Total deposits also increased. Time deposits at the five major banks rose from 812.25 trillion won in January to 815.7006 trillion won last month, marking a return to an upward trend after three months. Demand deposits, which are funds waiting to be invested, also increased by 18.1958 trillion won during the same period, from 571.5289 trillion won to 589.7247 trillion won. The balance of installment savings also rose by 48.53 billion won from the previous month, totaling 37.322 trillion won.