April Household Loans Increase by 0.2 Trillion Won... First Rebound Since August Last Year

Financial Services Commission Announces 'Household Loan Trends in April 2023'

[Image source=Yonhap News]

In April, the outstanding household loans across the entire financial sector increased by approximately 200 billion KRW compared to the previous month, marking the first rebound since August last year.

According to the 'Household Loan Trends in April 2023' released by the Financial Services Commission on the 11th, household loans across all financial sectors increased by 200 billion KRW last month. This represents a 1.5% decrease compared to the same month last year.

By loan category, the balance of mortgage loans increased by 1.9 trillion KRW. Although the secondary financial sector decreased by 1 trillion KRW, bank mortgage loans increased by 2.8 trillion KRW. This shows a wider increase compared to March, when mortgage loans turned to an upward trend with an increase of 1 trillion KRW.

Other loans decreased by a total of 1.7 trillion KRW, with bank loans down by 500 billion KRW and secondary financial sector loans down by 1.2 trillion KRW.

By financial sector, bank household loans increased by 2.4 trillion KRW, showing the first increase this year. Jeonse loans decreased by 1.7 trillion KRW, group loans by 400 billion KRW, and other loans by 500 billion KRW, but individual mortgage loans increased by 300 billion KRW and policy mortgages increased by 4.7 trillion KRW.

In the secondary financial sector, loans slightly increased in insurance (100 billion KRW), specialized credit finance companies (300 billion KRW), and savings banks (20 billion KRW), but mutual finance decreased by 2.6 trillion KRW, resulting in an overall decrease of 2.2 trillion KRW.

An official from the financial authorities stated, "Household loans increased by 200 billion KRW in April due to the influence of policy mortgages, marking the first rebound since August last year," and added, "We will closely monitor the trends to ensure stable management of household debt and continuously check for any risk factors related to household debt due to high interest rates."