Last month, household loans from the top five banks increased by nearly 7 trillion won. The household loans increased by 1.8 trillion won during the two business days following the government's announcement of stringent lending regulations on the 27th.
According to the financial sector on the 1st, the balance of household loans from the top five banks, including KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and NongHyup, as of the end of June was 754.8348 trillion won, an increase of 6.7536 trillion won from the end of the previous month. This was the largest increase in 10 months since August of last year (9.6259 trillion won).
The increase in household loans is attributed to the rise in housing transactions in the metropolitan area and the booming stock market, leading to an increase in 'yongkeul' (loans pulled together until the soul). Additionally, there was a surge in demand from those looking to apply for loans before the implementation of the total debt service ratio (DSR) phase 3 regulations starting this month.
Last month, housing loans increased by 5.7634 trillion won, marking the largest increase in nine months since September of last year (5.9148 trillion won). Credit loans also rose by 1.0876 trillion won, the largest increase in nearly four years since July 2021 (1.8636 trillion won).
Last month, household loans from the top five banks increased by 1.84 trillion won in just two business days on the 27th and 30th. This surge is interpreted as being concentrated due to the financial authorities announcing a lending regulation on the 27th, limiting the housing loan amount for purchasing dwellings in the metropolitan area and regulated regions to 600 million won. The regulation took effect from the 28th, with high demand for loans observed on the day of the announcement.
A spokesperson from a commercial bank said, 'Although the surprise announcement of exceptionally stringent regulations is expected to reduce housing purchasing momentum in the metropolitan area, there are many applications for loans that were submitted before the regulations took effect, so the trend of increasing household loans is likely to continue for the time being.'