South Korea’s household debt grew at the fastest-ever pace in the first six months amid the protracted Covid-19 situation and runaway housing prices that required borrowings for rents and housing financing.

According to data released by the Bank of Korea on Wednesday, the outstanding bank loans to households stood at 1,030.4 trillion won ($895.38 billion) as of the end of June, adding 6.3 trillion won from a month earlier.

Banks’ household lending skidded 1.6 trillion won in May for the first time since January 2014 with expanded credit loan repayment by individuals as retail stock fever subsided in the wake of SK IE Technology (SK IET)’s IPO.

From January to June, household loans stretched by 41.6 trillion won, the biggest since data started being compiled in 2004.

Mortgage-backed loans rose 5 trillion won in June to 752.2 trillion won, larger than the 4 trillion won addition in May.

“Continuous increase in demand for housing purchases and long-term rent drove the surge in the banks’ mortgage-backed loans last month,” said Park Sung-jin, a senior manager at the BOK’s financial markets department.

Other loans including credit loans increased 1.3 trillion won to 277.3 trillion won.

According to data released by the Financial Services Commission and the Financial Supervisory Service, household lending by banks and non-banks also jumped 10.1 trillion won last month.

Mortgage loans by banks and non-banks rose 6.3 trillion won on increased housing transactions, and other loans including credit loans 3.7 trillion won.

Corporate loans extended by local banks gained 5.1 trillion won to 1,022.1 trillion won, slower than the 5.7 trillion won addition a month ago.

Loans extended to SMEs and individual businesses rose 6.1 trillion won, but loans to large conglomerates down 1.1 trillion won.

By Lee Ha-yeon

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