À̹ÌÁö È®´ë South Korea¡¯s household lending by local financial institutions rose by more than 10 trillion won ($8.8 billion) in October as personal credit loan gained by the biggest pace amid deteriorating business conditions and tougher regulation on bank lending.
According to data from the Bank of Korea (BOK) and Financial Services Commission (FSC), household lending by local financial institutions rose 10.4 trillion won in October. Of the total, 7.7 trillion won rise was from the banking and 2.7 trillion won from non-banking sector. Of the 7.7 trillion won increase from local banks, 3.5 trillion won was mortgage loans, bringing the outstanding amount to 598.2 trillion won.
Data showed that the rising pace for collective loans slowed in October while individual mortgage loans jumped from 1.6 trillion won in September to 2.4 trillion won in October. The increase came amid a temporary rise in housing transactions before the government introduced tightened rules to stabilize the country¡¯s property market in September. It generally takes about two months in a housing transaction until balance is cleared.
An unnamed FSC official said that the rise in household lending comes as people paid their balances for properties bought in August and September.
Housing transactions rose from 10,000 in June to 19,000 in September, figures showed.
Meanwhile, BOK data also showed that other loans including credit loans and overdraft accounts increased 4.2 trillion won in October to reach 216.1 trillion won in balance. It is the highest monthly gain since the central bank began compiling data in 2008.
Among other loans, credit loans rose 2.9 trillion won in October from the previous month. The on-month increase hovered 1 trillion won until early this year but with recent rise in demand for credit loans, the figure surpassed previous record of 2.7 trillion won rise in August, 2017.
By Lee Seung-yoon and Lee Eun-joo
[¨Ï Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]