Three Major Internet Banks See Surge in Mortgage Loans... 11 Trillion Won Jump in One Year

47% Increase Compared to Previous Year

The mortgage loans of the three domestic internet banks have increased by approximately 11 trillion won over the past year.

According to data from the Financial Supervisory Service submitted by Kim Hyun-jung, a member of the National Assembly's Political Affairs Committee, the total amount of mortgage loans from KakaoBank, K Bank, and Toss Bank as of August this year was 34.4 trillion won, a 47% increase compared to 23.4 trillion won in August of the previous year. This figure significantly exceeds the 10.4% growth rate of mortgage loans from the five major commercial banks during the same period.

In particular, K Bank's mortgage loan balance surged by 87.8% in one year, reaching 7.7 trillion won, while KakaoBank recorded a 29% increase to 24.9 trillion won. Toss Bank holds a balance of 1.8 trillion won since launching its jeonse and monthly rent deposit loan product.

This rapid growth is analyzed to be due to the low interest rates and convenient services provided by internet banks, especially the popularity of mortgage refinancing services. It has been pointed out that rather than expanding loans to middle- and low-credit borrowers, which was the original purpose of establishing internet banks, they are focusing on relatively safe and profitable mortgage loans.

Assemblywoman Kim stated, "The rapid increase in mortgage loans by internet banks does not align with their founding purpose of inclusive finance and may lead to a deterioration in household debt quality and financial market instability."