Last month, the household loans of Korea's five major commercial banks fell for the first time in two months. In contrast, unsecured loans turned to growth on the back of a buoyant domestic stock market and the impact of "investing with borrowed money."
According to the financial sector on the 1st, the outstanding loan balance of household loans at the five major banks—Kookmin, Shinhan, Hana, Woori, and NH Nonghyup—stood at 765.729 trillion won at the end of March, down 136.4 billion won from the end of the previous month.
The outstanding loan balance of household loans at these banks fell for two consecutive months in December last year and January this year, then inched up by 52.3 billion won in February.
The outstanding balance of mortgage loan was 610.339 trillion won, down 387.2 billion won from the previous month. The mortgage loan balance fell by 1.4836 trillion won in January this year, marking the first decline in 1 year and 10 months. It rose by 596.7 billion won in February, then fell again last month.
The outstanding balance of personal credit loans was 104.6595 trillion won, up 347.5 billion won from the previous month. Personal credit loans had declined for three straight months since December last year, but turned to an increase last month.
The outstanding balance of time deposits was 937.4565 trillion won, down 9.4332 trillion won. The outstanding balance of installment savings also fell by 251.2 billion won to 46.1577 trillion won.