'Record High' Card Loan 42 Trillion Won... "Increased by 600 Billion Won in One Month"

Card Loan Balance of 41.8 Trillion Won at the End of August

The balance of card loans has approached 42 trillion won. Photo by Yonhap News

The balance of card loans has been estimated to be approaching 42 trillion won. It is setting a new record high every month.

According to the Credit Finance Association on the 20th, the card loan balance of nine card companies (Lotte, BC, Samsung, Shinhan, Woori, Hana, Hyundai, KB Kookmin, NH Nonghyup Card) as of the end of August was 41.831 trillion won.

This is about 600 billion won more than the previous record at the end of July (41.2266 trillion won).

The card loan balance has been increasing steadily, rising by 450.7 billion won in January compared to the previous month, followed by 200 billion won in February, 7.8 billion won in March, 482.3 billion won in April, 554.2 billion won in May, 100 billion won in June, and 620.6 billion won in July.

Financial authorities pointed out that some card companies have engaged in aggressive marketing by expanding card loan limits, leading to a concentration in the increase of card loans. The Financial Supervisory Service has requested three card companies?Lotte, Hyundai, and Woori Card?that have rapidly expanded card loans this year to submit risk management plans by the end of this month.

An industry insider explained, "As savings banks and loan companies refrain from operating to manage soundness, the demand for loans among ordinary people continues to flow into card loans."