Korea's Household Loans Rebound by 2.8 Trillion Won in October
Household lending at South Korea's five major commercial banks returned to growth in October after declining a month earlier. The rebound was driven by simultaneous increases in mortgage and credit loans, as demand for funds related to the fall moving season coincided with investors seeking to buy s
South Korea's household loan balance rebounded by 2.77 trillion won in October, reaching 783.6 trillion won, or approximately $585 billion. This increase was driven by simultaneous growth in mortgage and credit loans, with mortgage loan balances rising by 1.70 trillion won to 623.1 trillion won. The rebound in household loans came after a decline in September, and marks the first increase since August 2022.
The rise in mortgage loans is attributed to rising home prices, particularly in the Seoul metropolitan area, and seasonal demand associated with the fall moving season. Credit loans also returned to growth, reaching 108.9 trillion won at the end of October. However, interest rates on new household loans remain high, with the average rate on newly issued mortgage loans standing at 4.88% per year, the highest in 14 years.
Brief written by urgent.news from BusinessKorea's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
