South Korea’s household loans up 0.5% in H1

The outstanding balance of all household loans is KRW4.4t as of June 2024.

The balance of household loans in South Korea grew at a slower rate in June compared to a month earlier, according to data from the Financial Services Commissions (FSC) and the Financial Supervisory Service (FSS).

The outstanding balance of household loans across all of Korea’s financial sectors rose to KRW4.4t (approximately $3.19b) in June, lower than the KRW5.3t ($3.84b) in May.

For the first six months of 2024, household loans rose 0.5% to KRW7.9t ($5.72b), which the FSC and FSS described as “stable growth.”

“The financial authorities assessed that the growth of household loans in the first half of 2024 has been on a stable path within the level of GDP growth rate,” the FSC and FSS said in its assessment of household loan data for June 2024.

Home backed mortgage loans rose KRW6.1t ($4.42b) in June, as the banking sector continued to see an expansion in mortgage loans. Overall, the value of mortgage loans in South Korea is now at KRW6.3t ($4.57b) as of June, from KRW5.7t ($4.17b) in May.

Other types of loans registered a KRW1.7t ($1.23b) decline.

In the non-banking sector, household loans fell by KRW1.6t ($1.16b) due to the quarterly write-off of non-perofrming loans, the FSC and FSS said.