Bank Mortgage Loans Surge by 13 Trillion Won in One Year... 4.4 Trillion Increase in Gyeonggi-do Alone

Household Loans Slightly Decrease but Mortgage Loans Increase
Bank Mortgage Loan Delinquency Rate Doubles Compared to a Year Ago

As demand for housing purchase funds increases, bank mortgage loans have surged by more than 13 trillion won over the past year. During this period, the outstanding balance of mortgage loans in Gyeonggi-do alone increased by 4.425 trillion won, accounting for 32.3% of the total increase.

According to the "Deposit Banks Household Loan Status" data submitted by the Bank of Korea to Jin Sun-mi, a member of the National Assembly's Planning and Finance Committee (Democratic Party), as of the end of June this year, the outstanding balance of deposit banks' mortgage loans (excluding Korea Housing Finance Corporation mortgage loans) was approximately 647.83 trillion won, an increase of 172.964 trillion won (36.4%) compared to June 2018, five years ago.

In particular, the nationwide increase in mortgage loans over the past year reached 13.383 trillion won, with Gyeonggi-do accounting for about one-third of the increase at 4.425 trillion won. Daegu Metropolitan City followed with an increase of 2.378 trillion won, and Incheon Metropolitan City saw an increase of 2.253 trillion won, ranking third in terms of growth.

In the case of Seoul, the outstanding balance (207.28 trillion won) was the highest, but it decreased by 7.537 trillion won over the past year. Representative Jin said, "This is because the demand for loans needed for new housing occupancy increased as residents moved from Seoul and other provinces to Gyeonggi-do."

In terms of growth rate, Gyeongbuk (8.51%) was the highest, followed by Daegu (8.31%), Gyeongnam (6.72%), and Gangwon (6.49%).

Mortgage loans from internet banks also increased significantly, reaching 21.016 trillion won as of the end of June, up 7.56 trillion won (56.19%) from a year earlier.

As mortgage loans surge, the delinquency rate is also rising. Nationally (including internet-only banks), the delinquency rate for bank mortgage loans was 0.22% as of the end of June, up 0.12 percentage points from 0.10% a year earlier. This is not only double the rate from a year ago but also the highest quarterly rate since the Bank of Korea began compiling data in the fourth quarter of 2019.

Representative Jin emphasized, "As household loans rapidly increase, mortgage loans and delinquency rates continue to rise regionally, raising concerns about the deterioration of livelihood finance. We must consider the specific circumstances of each region to respond to the risks of rising delinquency rates and devise customized livelihood recovery measures for each financial consumer."