Return of the soul… Household debt increased by 10 trillion won in an instant

In the second quarter of this year (April to June), total household credit (debt) increased by nearly 10 trillion won compared to the previous quarter. 

Despite high interest rates, the decline in household debt ended in just two quarters, as housing mortgage loans soared by more than 14 trillion won along with the recovery of the real estate market, and credit transactions in which debt is invested in stocks increased. According to the statistics of ‘Household Credit (Provisional) for the 2nd Quarter of 2023

‘ announced by the Bank of Korea today (22nd), the household credit balance as of the end of June this year was 1,862.8 trillion won, at the end of the first quarter (end of March 1,000 ) . It was 0.5% (9.5 trillion won) more than 853.3 trillion won). Household credit refers to ‘comprehensive household debt (debt)’, which is the sum of loans received by households from banks, insurance companies, lending companies, public financial institutions, etc., plus the amount of credit card used before payment (sales credit). Household credit declined one after another in the  fourth quarter of last year ( -3.6 trillion won) and the first quarter of this year ( -14.3 trillion won) due to monetary tightening such as interest rate hikes, but rebounded in three quarters. However, compared to the balance at the end of the second quarter of last year (1,868.4 trillion won) a year ago, it is 5.6 trillion won less. If you look only at household loans, excluding sales credit (card payments), the balance at the end of the second quarter was 1,748.9 trillion won, an increase of 10.1 trillion won from the end of the first quarter (1738.8 trillion won). 

In particular, among household loans, mortgage loans (balance of 1.31 trillion won) increased by 14.1 trillion won, again breaking the record for the largest balance following the previous quarter. The increase also exceeded three times the first quarter (4.5 trillion won).

Other loans, including credit loans (balance of KRW 717.7 trillion), decreased by KRW 4 trillion, maintaining a downward trend for the seventh consecutive quarter. However, the decline plunged by more than 10 trillion won from 15.5 trillion won to 4 trillion won in one quarter.

By channel, household loans at deposit banks increased by 4 trillion won over the past three months, but at non-bank deposit institutions such as mutual finance, mutual savings banks, and credit cooperatives, they decreased by 6.5 trillion won메이저사이트.

Household loans from other financial institutions surged by 12.6 trillion won, led by mortgage loans (+10.4 trillion won). In detail, public financial institutions including Korea Housing Finance Corporation raised 4.7 trillion won due to special Bogeumjari loans, and 7.8 trillion won from other financial intermediaries such as securities companies.

Seo Jeong-seok, head of the Bank of Korea’s financial statistics team, said, “Household credit increased by 9.5 trillion won in the second quarter, the largest increase since 17.4 trillion won in the fourth quarter of 2021.” This is because demand for household loans has increased, and the decline in sales credit has also slowed due to seasonal effects,” he explained. 

He added, “There is also a part where credit offerings from securities companies were used as stock investment funds.”

Regarding the impact of 50-year mortgage loans, “Since commercial banks mainly launched after July, they were not included in the statistics for this second quarter.

Regarding the future trend of household credit, “The Bank of Korea and the government are paying attention to and closely examining the trend of household credit growth,” he said . “There is a consensus that the ratio of household debt to household debt needs to be managed so that it does not increase, so we will closely monitor the trend going forward,” he said. 

Quarterly household sales credit balance (KRW 113.9 trillion) decreased by KRW 600 billion mainly at credit card companies and specialized credit companies (KRW -500 billion). Although sales credit decreased overall due to the strengthening of installment finance risk (risk) management by installment finance companies, the total decrease in sales credit was smaller than in the first quarter (-3.3 trillion won) due to seasonal factors, as credit card usage increased . is the description.


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