The household loans of the five major banks increased by more than 1.3 trillion won in less than ten days in April. This is similar to the household loan increase in March (1.7992 trillion won). There are analyses suggesting that the surge in housing transactions following the lifting of the land transaction permit area in February began to be reflected in household loans with a time lag. During the 39 days between the lifting of the permit area and its reassignment, the apartment transaction volume in the 'Jamsamdaechung' area (Jamsil, Samsung, Daechi, Cheongdam-dong) tripled.
According to the financial sector on the 15th, the household loan balance of the five major banks, including KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup, was 739.8744 trillion won as of the 11th, an increase of 1.3233 trillion won compared to the end of last month (738.5511 trillion won). The household loan increased by over 1 trillion won in just nine business days.
The balance of household mortgage loans, which is driving the increase in household loans, is 586.4588 trillion won, increasing by 778.3 billion won this month. On the 11th alone, mortgages rose by more than 200 billion won, and the daily increase in mortgages appears to be accelerating. Credit loans also increased. The balance of credit loans from the five major banks is 102.187 trillion won, up 580.7 billion won compared to the end of last month. This is attributed to the high demand for investment aimed at 'buying low' in domestic and foreign stocks stimulated by the U.S.-originated tariff shocks.
Household loans in the financial sector, including the five major banks, surged by 4.2 trillion won in February but plummeted in March, increasing by only 400 billion won. Financial companies typically engage in large-scale sales and disposals of non-performing loans at the end of the first quarter (January to March), which makes it appear as though the household loan balance is decreasing. Last year, the five major banks wrote off or sold 1.6079 trillion won worth of non-performing loans in the first quarter. This year, the scale of non-performing loan cleanup is expected to be larger.
The issue arises from April. Typically, loan approvals occur one or two months after the housing sales contract is signed. According to the real estate platform Zigbang, the transaction volume of apartments in the regulated areas increased approximately 3.6 times, from 99 cases during the same period (January 4 to February 11) to 353 cases from February 13, the day after the permit area lifting announcement, to March 23, the day before the reassignment. According to the Korea Real Estate Board, 4,743 apartment transactions occurred in Seoul in February, an increase of 46.7% compared to the previous month.
The financial authorities believe that after April is a 'critical turning point' for household loan management. Kwon Dae-young, Secretary-General of the Financial Services Commission, noted at a household loan review meeting on the 9th that "while household loans are showing a stable pattern, the housing transactions that were actively carried out prior to the reimplementation of real estate regulations in March are reflected in household debt statistics with a time lag, so the period after April will be an important turning point in managing household loans."
The financial authorities are strengthening daily and regional monitoring of household loans and are closely watching the trends. A Financial Services Commission official stated, "We are meticulously examining the trends in household loan increases and the balloon effect following the reassignment of the permit area," and added, "We hold weekly meetings with practical staff from commercial banks every Tuesday, and based on the atmosphere experienced at bank counters, demand for loans has not significantly spiked since the reassignment of the permit area."