In July, household loans in the financial sector increased by 2.2 trillion won, the lowest level since March this year. This is attributed to the effects of the household loan regulations implemented on June 27 and the enforcement of the three-tiered debt service ratio (DSR).
According to the financial authorities on the 13th, household loans across the financial sector increased by 2.2 trillion won last month, showing a reduced increase compared to the previous month (6.5 trillion won).
By loan item, the amount of loans for dwellings increased by 4.1 trillion won, indicating a slowdown compared to the previous month (6.1 trillion won). Both banks and second-tier financial sectors saw a decrease in the increase of loans for dwellings. Other loans, such as credit loans, decreased by 1.9 trillion won.
By sector, household loans from banks increased by 2.8 trillion won, showing a decline in the growth compared to the previous month (6.2 trillion won). Household loans from second-tier financial institutions decreased by 600 billion won.
On that day, the Financial Services Commission held a 'joint household debt inspection meeting' with related agencies such as the Ministry of Economy and Finance and the Ministry of Land, Infrastructure and Transport, as well as the Banking Association and five major commercial banks. Attendees evaluated that household loans significantly decreased last month but projected that 'the increase in household loans could continue, taking into account already completed housing transactions and loan approvals.'
The financial authorities clarified that there is not enough basis for claims regarding rising jeonse prices due to the June 27 regulation. They cited data on the fluctuation rates of jeonse prices for apartments in the metropolitan area from the Korea Real Estate Agency, stating, 'There have not been significant changes in recent rental price trends.' Additionally, they noted, 'The destabilizing factors in the jeonse market due to the June 27 regulation are not substantial.' According to the Korea Real Estate Agency, the fluctuation rate of jeonse prices for apartments in the metropolitan area from the first week of July to the first week of this month was between 0.01% and 0.03%, lower than the same period last year (0.13% to 0.15%).
The financial authorities noted that the recent surge of over 1 trillion won in credit loans from the five major commercial banks within a week in August is 'a temporary phenomenon.' They added, 'As recent deposits and other investments have been refunded, the increase in household loans has maintained a stable level up to now.' From the beginning of this month until the 7th, the household loans from the five major banks increased by 1.9111 trillion won, with credit loans accounting for a surge of 1.0693 trillion won.
Financial authorities and related agencies plan to closely inspect and respond strictly to illegal, irregular, or anomalous transactions related to real estate to prevent further overheating of the housing market and continued growth in household debt. They will focus on market disruption activities that artificially stimulate price increases, such as the withdrawal of reports after submission. Moreover, they intend to conduct thorough analyses of the funding sources for high-priced dwellings and verify if tax reports have been made properly.