Household loans in the financial sector increased by 1.4 trillion won in January from a month earlier. Household loans at banks fell by 1 trillion won, while household loans at mutual finance institutions rose by 2.3 trillion won.
The Financial Services Commission said on the 1st that household loans across all financial sectors increased by 1.4 trillion won from the previous month. Household loans, which fell by 1.2 trillion won in Dec. last year, rebounded in just one month.
Among household loans, mortgage loan increased by 3 trillion won, widening from the previous month's 2.3 trillion won. Other loans, including unsecured loans, fell by 1.7 trillion won.
The increase in household loans was led by mutual finance institutions. Last month, household loans at banks decreased by 1 trillion won, extending the decline from the previous month's 2 trillion won drop. Household loans at mutual finance institutions increased by 2.3 trillion won, with the rise growing from the previous month's 2 trillion won. In particular, household loans at NongHyup and the Korean Federation of Community Credit Cooperatives (KFCC) increased by 1.4 trillion won and 800 billion won, respectively.
This was due to a surge in group loans centered on KFCC and NongHyup as lending operations resumed at the start of the year.
An official at the Ministry of the Interior and Safety, the ministry overseeing KFCC, said, "We take seriously the continued increase in KFCC household loans, centered on mortgage loan, since last year," adding, "In line with the government-wide stance to strengthen household debt management going forward, we will further tighten oversight of KFCC's household loans."
An official at the financial authorities said, "In February, when financial firms fully resume sales and moving demand for the new school term overlaps, the increase in household loans could expand further and volatility could grow," urging, "All sectors should strengthen monitoring of trends in household loans and make every effort to manage them."