SEOUL– South Korea’s household credit grew at a slower pace in the third quarter from three months earlier amid tightened lending rules, central bank data showed Tuesday.
Household credit had come to 1,844.9 trillion won (US$1.58 trillion) as of end-September, up 36.7 trillion won from three months earlier, according to the data from the Bank of Korea (BOK).
Household credit refers to credit purchases and loans for households extended by financial institutions.
The growth compared with an increase of 43.5 trillion won tallied at the end of the second quarter.
The slower growth came as financial authorities tightened rules on lending as part of efforts to keep a lid on rising household debt, which is frequently cited as a major drag on the country’s economic growth.
The data showed household lending extended by banks and other financial institutions reached 1,744.7 trillion won in the third quarter, up 37 trillion won from three months earlier. The growth was smaller than an increase of 41 trillion won reported in the second quarter.
Mortgage loans rose 20.8 trillion won on-quarter to 969 trillion won in the third quarter.
Credit purchases had stood at 100.2 trillion won as of end-September, down 200 billion won from three months earlier, the BOK data showed.
Source: Yonhap News Agency