Growth of household loans shows signs of acceleration

The growth of household loans has shown signs of acceleration as combined household loans from the country's five major banks surged by approximately 2.2 trillion won (US$1.6 billion) in just four days last week, financial data showed Sunday. According to the data, the total household loan balance of the five major banks -- KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank and NongHyup Bank -- amounted to 710.8 trillion won as of last Thursday. The tally represents a spike of 2.18 trillion won in just four business days. Household loans from the five lenders had already surged by 5.34 trillion won throughout June, marking the biggest monthly increase since July 2021. The latest finding indicates an apparent acceleration in the growth of loans. By loan type, mortgage loans, which have seen increased demand with the recovery of housing transactions, rose by 838.7 billion won to a total of 553 trillion won. Credit loans also increased by 1.09 trillion won to a total of 103.9 trillion won in the four days . "As apartment prices in Seoul are generally rising, the sentiment among borrowers purchasing homes is quite strong and can be seen at bank counters," an official at one of the lenders said. The spike in credit loans is largely attributed to the initial public offering (IPO) subscription for general investors conducted by game company Shift Up Corp. last week. Over 18.5 trillion won in deposits were funneled to the IPO subscription, and industry observers believe a significant number of applicants have financed their applications through credit loans. Source: Yonhap News Agency