SEOUL — Recent financial data has revealed a notable acceleration in the growth of household loans, as the country's top five banks reported a combined increase of approximately 2.2 trillion won (US$1.6 billion) in just four days last week.
According to Yonhap News Agency, the total balance of household loans at KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and NongHyup Bank reached 710.8 trillion won as of last Thursday. This surge of 2.18 trillion won over four business days signifies a rapid increase in borrowing rates. The month of June alone saw a rise of 5.34 trillion won in household loans from these banks, marking the most significant monthly increase since July 2021 and highlighting a faster pace in loan accumulation.
The breakdown by loan type shows mortgage loans leading the charge, with an increase of 838.7 billion won, bringing the total to 553 trillion won. This rise is attributed to a rebound in housing transactions. Meanwhile, credit loans saw an even larger jump of 1.09 trillion won in the same period, totaling 103.9 trillion won.
An official from one of the involved banks noted, "As apartment prices in Seoul are generally rising, the sentiment among borrowers purchasing homes is quite strong and can be seen at bank counters." This sentiment reflects the increased demand for mortgage loans as more individuals seek to buy homes amidst rising prices.
Additionally, a significant spike in credit loans has been linked to the initial public offering (IPO) subscription for Shift Up Corp., which took place last week. Over 18.5 trillion won in deposits were channeled into the IPO subscription, with many applicants reportedly financing their bids through credit loans. This event underscores the broader implications of financial activities on loan trends, demonstrating how significant market events can drive borrowing behaviors.