Household loans by major banks rise at fastest pace in 10 months in June
Household loans extended by five major banks in South Korea rose at the fastest pace in 10 months, industry data showed Sunday, amid signs of overheating in the housing market and a recent rally in the local stock market.
Outstanding household loans extended by the five major commercials banks here, including KB Kookmin Bank and Shinhan Bank, stood at 752.1 trillion won ($547.6 billion) as of Thursday, up 3.99 trillion won from the end of May, according to the data.
This translates to a daily increase of 210.2 billion won over the 19-day period in June, the fastest pace since last August, when loans grew by a daily 310.5 billion won.
If this trend continues through the end of the month, household loans are expected to increase by 6.3 trillion won in June, marking the largest monthly gain since August last year, when they jumped 9.63 trillion won.
By category, outstanding home-backed loans reached 596.6 trillion won as of Thursday, up 2.99 trillion won from the end of May.
Unsecured loans also climbed to 104.4 trillion won, increasing by 1.09 trillion won over the same period.
Market watchers attributed the recent rise in household loans to strong demand for investment in both the real estate and financial markets.
Recent data showed that Seoul's apartment market has been on an upward trajectory for 20 consecutive weeks since turning positive in early February, with the pace of gains accelerating in recent weeks.
Apartment prices in the capital city climbed by an average 0.36 percent as of Monday, the biggest weekly increase since the second week of September 2018, when prices rose 0.45 percent.
Meanwhile, the local stock market has also been rallying since the new Lee Jae Myung government took office earlier this month.
The benchmark Korea Composite Stock Price Index (KOSPI) finished at 3,021.84 points Friday, surpassing the 3,000-point threshold for the first time since Dec. 28, 2021. (Yonhap)
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