Household Loans at 5 Major Banks Increase Most in 35 Months... 5.3 Trillion KRW Rise in One Month

Increase of 5.3415 trillion KRW
The largest increase in 2 years and 10 months
More than last month
The cause is mortgage loans

Household loans at the five major banks increased for the third consecutive month in June. The increase was even larger than in May, which was the biggest in 2 years and 10 months. The steady rise in demand for mortgage loans is the reason behind this.

According to the financial sector on the 1st, the outstanding balance of household loans at the five major domestic banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) stood at 708.5723 trillion won at the end of last month. This is an increase of 5.3415 trillion won from the previous month (703.2308 trillion won). Household loans, which had been on the rise since May last year, turned to a decline in March for the first time in 11 months but have continued to increase from April through last month. The outstanding balance of household loans surpassing 700 trillion won is the first time in two years since May 2022.

The increase was also larger than the previous month (5.2278 trillion won), marking the biggest rise in 2 years and 10 months since July 2021 (6.2009 trillion won).

The reason for the increase in household loan balances is attributed to mortgage loans. In particular, the increase in mortgage loans was larger than in May. The outstanding balance of mortgage loans last month was 552.1526 trillion won, up 5.8466 trillion won from the previous month. The increase in May was 5.3157 trillion won. Jeonse loans stood at 118.2226 trillion won, an increase of 23.99 billion won from the previous month (117.9827 trillion won). However, personal credit loans, which had increased for two consecutive months, decreased by 21.43 billion won to 102.7781 trillion won as of the end of last month, down from 102.9924 trillion won the previous month.

The outstanding balance of corporate loans also continued to rise. The corporate loans (large and small businesses) at the five major banks last month amounted to 811.3482 trillion won, an increase of 8.0251 trillion won from the previous month (803.3231 trillion won). This marks six consecutive months of growth.

Meanwhile, the total deposit balance at the five major banks reached 2,003.7392 trillion won, up 16.2336 trillion won from the previous month. The balance of time deposits increased by 1.4462 trillion won from the previous month to 891.1524 trillion won. The balance of installment savings also rose by 1.1252 trillion won to 34.6084 trillion won. Demand deposits, including Money Market Deposit Accounts (MMDA), stood at 638.8317 trillion won, an increase of 24.7262 trillion won from the previous month.