“The impact of the June 27th regulation began to manifest in September, reducing the increase in household loans across all financial sectors.”
“According to financial authorities today (16th), household loans across all financial sectors increased by 1.1 trillion KRW in September, showing a reduced increase compared to the previous month (+4.7 trillion KRW).”
“Mortgage loans increased by 3.6 trillion KRW, showing a reduced increase compared to the previous month (+5.1 trillion KRW), and both the banking sector (+3.8 trillion KRW to +2.5 trillion KRW) and the secondary financial sector (+1.3 trillion KRW to +1.1 trillion KRW) saw a reduction in the increase.”
“Other loans decreased by 2.4 trillion KRW, widening the decrease from the previous month (-400 billion KRW), largely due to the expanded decrease in credit loans (-300 billion KRW to -1.6 trillion KRW).”
“By sector, household loans in the banking sector increased by 2 trillion KRW, with a reduced increase compared to the previous month (+4.1 trillion KRW).”
“Bank’s own mortgage loan increase reduced from the previous month (+2.7 trillion KRW to +1.4 trillion KRW), while policy loans maintained their increase (+1.1 trillion KRW to +1.1 trillion KRW). Other loans, which increased by 300 billion KRW in August, turned to a decrease of 500 billion KRW.”
“Household loans in the secondary financial sector decreased by 900 billion KRW, reversing from an increase of 600 billion KRW in August.”
“Insurance (-500 billion KRW to -200 billion KRW) saw a reduced decrease compared to the previous month, while the decrease in financial companies widened (-200 billion KRW to -1.1 trillion KRW). Mutual savings (+1.2 trillion KRW to +900 billion KRW) saw a reduced increase, and savings banks (+300 billion KRW to -500 billion KRW) turned to a decrease.”
“The reduced growth in household loans in September is interpreted as a result of the declining impact of housing transactions and the June 27th regulation taking effect over time, leading to a reduced increase in new mortgage loans (+5.1 trillion KRW to +3.6 trillion KRW).”
“Other loans also saw a widened decrease in credit loans (-300 billion KRW to -1.6 trillion KRW) due to reduced demand for vacation season funds and quarterly sales, leading to an increased decrease from the previous month (-400 billion KRW to -2.4 trillion KRW).”
“The Financial Services Commission evaluated that ‘the growth of household loans in September is significantly stabilizing’ but emphasized the need for more proactive household loan management, noting ‘there is concern that, with some regions in the metropolitan area showing overheating trends in the real estate market, household loan growth may once again expand over time.'”