The trend of household debt management by financial authorities led to a sharp decrease in household loans in March, almost halving compared to the previous month. However, the effects of the lifting and re-designation of land transaction permits may be felt until April, so financial authorities are closely monitoring the trend of household debt.
As of the 27th, household loan growth across all financial sectors was around 2 trillion won, which is half the level compared to the previous month (4.3 trillion won). This is attributed to the disappearance of demand stimulated by the new school semester and moving season, as well as the meticulous management of new loans and approval trends by financial authorities and banks on a regional and monthly basis.
The financial authorities believe the impact of lifting and re-designating land transaction permits on household loans this month is not significant due to a 1-2 month lag between housing transactions and loan execution. They plan to closely monitor the trend of household debt considering the possibility of continued impact from the increase in house prices and transaction volume following the lifting of the land transaction permits until after April.