On Mar., household loans across all financial sectors increased by 3.5 trillion won, with the rise larger than in the previous month (2.9 trillion won).
According to the financial authorities on the 8th, the March increase in household loans was largely driven by a turnaround in other loans and an expansion of lending by secondary financial institutions. However, mortgage loan growth slowed. Mortgage loans rose by 3 trillion won, narrowing from the previous month's 4.1 trillion won. In the banking sector, the increase shrank sharply from 300 billion won to 30 billion won, and in secondary financial institutions, it also narrowed from 3.8 trillion won to 3 trillion won.
In contrast, other loans rose by 500 billion won, turning to an increase from a 1.2 trillion won decline the previous month. This is seen as due to the contraction in the decrease of unsecured loans, from 1 trillion won to 200 billion won.
By sector, household loans at banks increased by 500 billion won, turning to growth from a 400 billion won decline the previous month. Banks' own mortgage loans fell by 1.5 trillion won, with the drop widening, but policy loans increased by 1.5 trillion won, with the rise slightly larger. Other loans also shifted from a 700 billion won decrease to a 500 billion won increase.
Household loans at secondary financial institutions increased by 3 trillion won, with the pace of growth slightly slower than the previous month (3.3 trillion won). At mutual finance institutions, the increase narrowed from 3.1 trillion won to 2.7 trillion won, while at insurers it expanded from 200 billion won to 600 billion won. Savings banks saw their decline widen from 100 billion won to 400 billion won, and credit card and finance companies held steady at a 100 billion won increase, the same as the previous month.
An official at the financial authorities said, "Despite the wider decline in banks' own mortgage loans, the overall increase in household loans expanded due to the rise in other loans and in secondary financial institutions," and noted, "The sequential reflection of disbursements of group loans approved before the suspension of new lending by mutual finance institutions had an effect."