In the first half of this year, household loans increased by nearly 22 trillion won. The Financial Services Commission reports that the upward trend in household loans may continue for the time being even after the measures announced on June 27, and has urged financial institutions to find ways to block regulatory avoidance.
On the 9th, the Financial Services Commission held a household debt inspection meeting chaired by Secretary-General Kwon Dae-young and announced this information. According to the Financial Services Commission, the total balance of household loans across the financial sector increased by 21.7 trillion won from January to June of this year. During this period, mortgage loans rose by 28.4 trillion won, while other loans, including credit loans, decreased by 6.6 trillion won.
Last month, the increase in household loans was recorded at 6.5 trillion won, of which mortgage loans accounted for 6.2 trillion won, and other loans increased by 300 billion won. Since the government announced the implementation of the three-phase debt service ratio (DSR) regulation starting in July, it is interpreted that demand for the 'last train' of loans has surged. The Financial Services Commission expects the trend of rising household loans to continue for a while, based on projections considering the volume of housing transactions and loan approvals that have already been contracted.
On this day, the Financial Services Commission and related agencies emphasized their commitment to respond strictly to unusual transactions following the implementation of the June 27 measures. The Financial Supervisory Service plans to conduct a comprehensive investigation of business loans to check for any diversion of funds. The Ministry of Land, Infrastructure and Transport will continue to inspect false contract reports and other related issues.
In addition, a message was conveyed to private financial companies. Secretary-General Kwon noted, 'The success of the June 27 measures depends on blocking any balloon effects and means of avoidance and consistently implementing the policies.' He requested that financial institutions proactively identify various types of avoidance means and develop prevention measures to be shared across the financial sector.