The Financial Services Commission said on the 11th that household loans across all financial sectors increased by a total of 930 billion won in May, with the pace of growth widening from the previous month's 350 billion won increase. Mortgage loan balances rose by 400 billion won, with the pace of growth narrowing from 550 billion won in the previous month.
By sector, household loans in the banking sector increased by 690 billion won, with the pace widening from the previous month's 210 billion won increase. Bank-originated mortgage loans saw their increase widen from 140 billion won to 210 billion won, while policy loans saw their increase narrow from 140 billion won to 110 billion won. Other loans shifted from a 60 billion won decrease to a 370 billion won increase.
The 320 billion won increase in mortgage loans in May consisted of 210 billion won in bank-originated loans, 90 billion won in Didimdol and Bogeumjari support loans, and 10 billion won in products such as the Bogeumjari loan. General mortgage loans increased by 150 billion won and group loans by 100 billion won, while jeonse loans decreased by 40 billion won. Mutual finance institutions saw their increase narrow from 210 billion won to 70 billion won, but insurance shifted from a 40 billion won decrease to a 90 billion won increase, savings banks from a 2 billion won decrease to a 20 billion won increase, and credit finance companies from a 200 billion won decrease to a 600 billion won increase.
Shin Jin-chang, Secretary-General of the Financial Services Commission (FSC), said, "In May, mortgage loans saw their month-over-month growth narrow despite a recent increase in transactions of dwellings and an expansion in the execution of previously approved group loans such as interim payments," and added, "However, due to family-month funding needs and the stock market, the increase in other loans, centered on overdraft accounts, expanded significantly."
Nationwide transactions of dwellings for sale totaled 61,000 units in November last year, 63,000 in December, 61,000 in January this year, 58,000 in February, 72,000 in March, and 70,000 in April. Apartment sales transactions in the Seoul metropolitan area also rose from 21,000 units each in November and December last year to 23,000 in January this year, 22,000 in February, 27,000 in March, and 28,000 in April.
Shin said, "Now is the time for the relevant agencies and the entire financial sector to make every effort to thoroughly manage household liability," and added, "Until the upward trend in household liability stabilizes, we will operate an emergency household liability management system by holding weekly review meetings chaired by the director-general of financial policy at the Financial Services Commission (FSC), with participation from the Financial Supervisory Service (FSS), the five major banks, and financial companies that have not met their management targets, to closely check the status of management plan implementation."