South Korean banks’ household lending rose faster last month due to robust demand for both mortgage and credit loans, central bank data showed Thursday.
Debt owed by households to deposit-taking banks totaled 1,189.4 trillion won (789.5 billion U.S. dollars) at the end of June, up 7.6 trillion won (5.0 billion dollars) from a month earlier, according to the Bank of Korea (BOK).
The June growth was faster than an expansion of 6.9 trillion won (4.6 billion dollars) in the previous month, keeping an upward trend for a fourth straight month.
Banks’ mortgage loan increased 4.3 trillion won (2.9 billion dollars) last month amid higher home transactions.
The domestic real estate market fluctuated in recent months, with the number of apartment transactions across the country reaching 48,000 in January, 41,000 in February, 49,000 in March, 49,000 in April and 49,000 in May.
Other loans to households, including credit loan, credit line and commercial real estate-backed loan, advanced 3.3 trillion won (2.2 billion dollars) in June compared to the previous month.
The BOK left its benchmark interest rate unchanged at 2.50 percent for eight straight times in May, but it indicated rate hikes later this year on the back of the improved economic growth, inflationary pressure, household debt risks and the exchange rate volatility.
Banks’ corporate loan came to 1,413.4 trillion won (938.2 billion dollars) at the end of June, up 5.1 trillion won (3.4 billion dollars) from a month earlier.
Lending to big companies mounted 3.4 trillion won (2.3 billion dollars), while loan to small firms swelled 1.7 trillion won (1.1 billion dollars) last month.
