Refer Report

The balance of home mortgage loans at the five major banks only increased by about 1 trillion won in October. The amount of mortgage debt increased by nearly 9 trillion won in August alone, but the increase decreased for two consecutive months in September and October.

According to the banking sector explanation on the 1st, the balance of main loans of the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) as of the end of October was 575.6687 trillion won, 1 trillion more than the end of the previous month (574.5764 trillion won). It increased by 92.3 billion won. The total household loan balance was 732.0812 trillion won, an increase of 1.1141 trillion won during the same period.

The increase in mortgage loans last month was the smallest since April. The increase in the main loan balance of the five major banks grew steeply every month, including KRW 4.3433 trillion in April, KRW 5.3157 trillion in May, KRW 5.8467 trillion in June, and KRW 7.5975 trillion in July. The increase in August reached 8.9114 trillion won. However, as the banking sector introduced measures such as raising interest rates and the second stage of Stress DSSR, a household debt management measure, was implemented, the increase in September decreased once to 5.9149 trillion won. The decline in the increase in October also appears to have had that effect.

The amount of increase in not only the main loan but also the balance of the lease loan also decreased. The increase, which recorded 191.8 billion won in July, 412.8 billion won in August, and 212.7 billion won in September, decreased to 189.2 billion won in October. Credit loans, which had hardly increased in September, increased by 388 billion won in one month to 103.8451 trillion won at the end of October, but the increase was not large compared to August (849.4 billion won).

The banking sector’s tightening of household loans is expected to continue until the end of the year. This is because the loan increase target submitted at the beginning of the year must be met as much as possible. Measures such as restrictions on mortgage loans for multiple homeowners are continuing, and some banks are waiving early repayment fees to reduce loan balances.

Reporter Jo Hae-young hycho@hani.co.kr

Source: Korean