Household Loans in April Increase by 4.1 Trillion Won Compared to Previous Month

Financial Supervisory Service Announces April Household Loan Trends
Bank Household Loans Increase by 5.1 Trillion Won
"IPO Concentrated in April-May is the Cause"

Household loans increased by more than 4 trillion won compared to the previous month last month.

According to the provisional household loan trends for April announced by the Financial Supervisory Service on the 13th, total household loans in the financial sector increased by 4.1 trillion won compared to the previous month. Since the beginning of this year, household loans increased by 900 billion won in January, decreased by 1.9 trillion won in February and 4.9 trillion won in March, before reversing to an increase last month.

By sector, household loans at banks alone increased by 5.1 trillion won compared to the previous month. Didimdol and Buteemok loans were previously executed with funds from the Housing and Urban Fund and thus were not reflected in household loan statistics, but starting last month, they have been executed with bank funds and are now included in the household loan statistics. The temporary increase in unsecured loans due to a series of initial public offering (IPO) schedules last month also contributed to the rise in bank household loans. Household loans also increased at insurance companies (100 billion won), savings banks (500 billion won), and specialized credit finance companies (600 billion won). On the other hand, loans decreased in mutual finance institutions (-2.1 trillion won).

By type, only mortgage loans increased by 4.1 trillion won. Other loans also rose by 30 billion won compared to the previous month.

A Financial Supervisory Service official stated, "Although temporary factors partially influenced the increase in household loans last month, the continued expectation of interest rate cuts and the possibility of a housing market recovery mean that the expansion of the household loan growth trend cannot be ruled out," adding, "We will make policy efforts to ensure that household debt is managed within the domestic gross domestic product (GDP) growth rate."