Household debt is expected to increase by 24 trillion won over an eight-day period, likely setting a new record for monthly growth.

[Increasing ‘depression-type loans’]
Three consecutive months of loan growth since April
Demand focused on Seoul apartment transactions, ‘Despite the government’s efforts to stabilize household loans, major commercial banks continue to see an increase in household loans. In particular, as apartment prices in major areas of Seoul soar, mortgage loans have significantly increased.’,
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, ‘ According to the Bank of Korea on the 13th, the balance of household loans from deposit banks (including policy loans) at the end of last month stood at 1120.8 trillion won, increasing by 5.5 trillion won compared to the previous month. This marks three consecutive months of growth since the rebound in April this year.’,
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, ‘ The problem lies in the fact that the pace of household loan growth has not slowed down this month. As of the 8th, the balance of household loans from the five major banks including KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup Bank reached 718.2 trillion won, increasing by 2.4747 trillion won compared to the end of the previous month. If this trend continues until the end of the month, there is a high possibility of surpassing last month’s increase (7.6 trillion won). The increase last month was the largest since major commercial banks started compiling monthly loan balances in 2014. Despite banks gradually raising loan interest rates to prevent a rapid increase in household debt, the loan volume continues to rise.’,
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, ‘ The sharp increase in household loans from banks is interpreted as a result of the demand for homeownership increasing with the revival of apartment transactions in the central areas of Seoul. Ham Young-jin, head of the Real Estate Research Lab at Woori Bank, forecasted, “The income criteria for special loans for newborns have been relaxed, and the possibility of interest rate cuts in Korea and the United States is open.” He added, “In a situation where there is some demand for real estate purchases, the trend of an increase in mortgage loans is expected to continue.”‘,
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, ‘ Meanwhile, Financial Supervisory Service Governor Yip Pok-hyun emphasized the need to focus on supervisory capabilities in managing household loans to stabilize the housing market during an executive meeting on the 13th, saying, “Inspect the handling process of household loans by banks on-site and take strict measures against illegal loans.”‘,
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