Korea’s household credit at record high of $1.6 bn, loan gain largest-ever Q4

2021.02.23 15:19:47

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South Korea`s household debt reached a record high of 1,726.1 trillion won ($1.55 trillion) as of December last year, central bank data showed Tuesday, looming large as a potential risk to the economy if rates go higher.

The balance in household credit counting in credit-based purchases and loans added 44.9 trillion won in the fourth quarter from the previous three months to mark the third biggest-ever quarterly rise on record.

The previous record was a 46.1 trillion won rise in the fourth quarter of 2016, followed by a 44.4 trillion won rise in the third quarter of last year.

The household credit balance stretched 7.9 percent on year, or 125.8 trillion won, the biggest rise since the second quarter of 2017, according to the Bank of Korea.

Household lending extended by banks and other financial institutions reached 1,630.2 trillion won in the fourth quarter, up 2.8 percent or 44.5 trillion won from three months ago in the largest-ever quarterly increase.

Compared to a year ago, the household loan balance gained 8.3 percent or 125.6 trillion won, also the biggest rise since 127.5 trillion won in the first quarter of 2017.

The growth of household debt extended by banks grew from 26 trillion won in the third quarter of last year to 28.9 trillion won in the fourth quarter. The comparative figure by non-bank lenders also gained 3.1 trillion won in the third quarter and 6.6 trillion won in the following quarter.

By Pulse

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