The recent decline in jeonse (lease) transactions has led to a slowdown in the growth of household loans, and the increase in personal "debt investment" has also narrowed. According to 20th, the Financial Supervisory Service reported that household loans at banks and non-bank financial institutions increased by 4.9 trillion won in August, a decrease of 2.1 trillion won from the previous month's 7 trillion won. In August, jeonse loans, which are a type of household loan, increased by 700 billion won, down 1.6 trillion won from the previous month's 2.3 trillion won. The slowdown in household loans is attributed to the decline in jeonse transactions. The Korea Real Estate Agency reported that the number of jeonse transactions in Seoul and the metropolitan area decreased by 15.9% and 23.1%, respectively, compared to the previous month. The Financial Supervisory Service analyzed that "the slowdown in household loans is due to the decrease in jeonse transactions and the base effect of the previous month's large increase." The increase in household loans in August was mainly due to the increase in mortgage loans, which rose by 2.9 trillion won, up 400 billion won from the previous month. On the other hand, the increase in other types of loans, such as credit loans, decreased by 1.1 trillion won to 1.4 trillion won. The Financial Supervisory Service also reported that the increase in "debt investment" by individuals, which refers to borrowing money to invest in stocks or other assets, also narrowed. The stock investment credit balance, which is an indicator of debt investment, increased by 217.4 billion won in August, down 132.6 billion won from the previous month's 350 billion won. The Financial Supervisory Service stated that "we will continue to monitor the trend of household loans and debt investment, and take necessary measures if necessary."
Korea's household loan growth slowed down in July, partly due to a decline in property transactions. According to the Korea Bank's July 14th report on financial market trends, the total amount of household loans reached 1,194.8 trillion won by the end of July, up by 5.4 trillion won from the previous month. The growth rate of house loan loans shrank compared to May (4.3 trillion won) and June (7.6 trillion won).
The Korea Bank attributed this to continued growth in April-June housing transaction volumes, but a slowdown in property sales and reduced demand for down payment installments on properties. The rate of decrease in housing loan loans continued from September last year. The drop in individual stock investments also contributed to a growth rate reduction in other types of loans, which shrank by 2 trillion won compared to May (3.3 trillion won) and June (7.6 trillion won).
The overall growth of household loans decreased to 6 trillion won in July, from 8.3 trillion won in June. The house loan loan growth rate also declined to 3.5 trillion won from 4.5 trillion won in June. Other types of loans, including real estate construction loan, commercial real estate loan, and personal investment loan, also decreased by 3.8 trillion won and 2.7 trillion won, respectively, in July compared to the same period in June.
Written by urgent.news from Hankyoreh's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
