Bank of Korea Releases First-Ever "Household Debt by Borrower" Data
New Household Loans per Borrower Reach 38.52 Million Won in Q3, Up 260,000 Won
Home Mortgage Loans Rise to 227.07 Million Won, Increasing by 17.12 Million Won
Majority Concentrated Among Borrowers in Their 30s and 40s (58.3%), Seoul Metropolitan Area (62.7%), and Home Mortgage Loans (44.6%)
This year, there has been a significant increase in home purchases by people in their 30s and 40s who have taken out the maximum possible loans, particularly in the Seoul metropolitan area.
According to the "Household Debt by Borrower" report released by the Bank of Korea on December 22, the amount of new home mortgage loans issued in the third quarter of this year reached a record high of 287.92 million won for borrowers in their 30s and 246.27 million won for those in their 40s.
The Bank of Korea compiled and published, for the first time on this day, statistics on household debt by borrower, based on sample data extracted from the NICE personal credit information database. The statistics are organized by borrower characteristics and usage patterns, showing the amount and proportion of loans per borrower.
In the third quarter of this year, the amount of new household loans per borrower was 38.52 million won, an increase of 260,000 won compared to the previous quarter. Per-borrower household loans had been increasing from the third quarter of 2022 through the third quarter of last year, but then shifted to a decline before showing a slight increase again since the second quarter of this year. Home mortgage loans rose by 17.12 million won to 227.07 million won. After remaining mostly flat since the fourth quarter of last year, home mortgage loans turned upward in the third quarter of this year. In terms of total loan amount, borrowers in their 30s and 40s (58.3%), the Seoul metropolitan area (62.7%), banks (58.3%), and home mortgage loans (44.6%) accounted for the majority.
By age group, borrowers in their 30s (2.43 million won increase) and 40s (720,000 won increase) saw an increase compared to the previous quarter, while those in their 20s (700,000 won decrease), 50s (870,000 won decrease), and 60s and older (1.03 million won decrease) saw a decline. By region, the Seoul metropolitan area (750,000 won increase), Chungcheong region (660,000 won increase), Honam region (340,000 won increase), and Daegyeong region (1.03 million won increase) all saw increases compared to the previous quarter, while the Dongnam region (1.33 million won decrease) and Gangwon/Jeju region (1.71 million won decrease) saw declines.
By financial sector, banks (1.59 million won increase), non-bank institutions (2.32 million won increase), and others (830,000 won increase) all saw increases compared to the previous quarter. By loan product, home mortgage loans (17.12 million won increase), non-housing secured loans (2.69 million won increase), and jeonse deposit loans (3.55 million won increase) all rose compared to the previous quarter, while credit loans (3.85 million won decrease) declined. Other loans remained flat.
At the end of the third quarter, the outstanding balance of household loans per borrower stood at 96.74 million won, an increase of 560,000 won from the previous quarter. Home mortgage loans rose by 2.1 million won from the previous quarter to 156.26 million won. In terms of total loan amount, borrowers in their 30s and 40s (51.6%), the Seoul metropolitan area (58.9%), banks (61.8%), and home mortgage loans (51.2%) accounted for a large proportion.
Per-borrower household loans had been increasing from the third quarter of 2022 through the third quarter of last year, but then shifted to a decline before showing a slight increase again since the second quarter of this year.
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