Employees who paid off loans with bonuses... Household loans decreased after 10 months

Last month, the household loan volume of major commercial banks decreased for the first time in 10 months. This is believed to be due to a reduction in unsecured loans as bonuses and performance incentives were paid during the holidays and year-end/new year period.

According to the financial sector on the 3rd, the outstanding household loans of the five major commercial banks (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup) amounted to 733.6588 trillion won in January. This is a decrease of 47.62 billion won compared to the previous month. It is the first decline in 10 months since a 2.2238 trillion won decrease in March last year.

The decrease in household loans is attributed to unsecured loans. The outstanding balance of unsecured loans was 102.0082 trillion won, down 1.595 trillion won from the previous month. It is analyzed that office workers repaid existing loans as holiday bonuses and year-end/new year performance incentives were paid.

However, the outstanding balance of mortgage loans increased by 1.5136 trillion won to 579.9771 trillion won compared to the previous month. The upward trend has continued since an increase of 1.0922 trillion won in October last year, followed by 1.325 trillion won in November and 1.4697 trillion won in December.