The financial authorities said on the 9th that household loans across all financial sectors increased by a total of 8.3 trillion won in the previous month, narrowing from 9.3 trillion won a month earlier. Mortgage loan balances rose by 4.5 trillion won last month, widening from 4 trillion won the month before. While the banking sector's increase widened from 3.2 trillion won to 4.3 trillion won, the secondary financial sector's increase narrowed from 800 billion won to 300 billion won.
By sector, bank household loans increased by 7.6 trillion won last month, widening from 6.9 trillion won a month earlier. Specifically, bank-originated mortgages widened from 2.1 trillion won to 2.9 trillion won, and policy loans widened from 1 trillion won to 1.4 trillion won. Other loans narrowed from 3.7 trillion won to 3.3 trillion won.
Household loans in the secondary financial sector increased by 700 billion won, narrowing from 2.4 trillion won a month earlier. Mutual finance institutions narrowed from 800 billion won to 100 billion won, while insurance slightly widened from 900 billion won to 1 trillion won. Credit card and finance companies shifted from a 600 billion won increase to a 200 billion won decrease, and savings banks shifted from a 200 billion won increase to a 300 billion won decrease.
Shin Jin-chang, Secretary-General of the Financial Services Commission (FSC), said mortgage loan balances in June increased from the previous month due to a recent rise in transactions of dwellings and greater execution of previously approved group loans. He added that, however, the increase in other loans fell somewhat from the previous month, due in part to voluntary management measures on bank unsecured loans, narrowing the overall growth in household loans.
Shin, the Secretary-General, noted, "It is difficult to apply household loan regulations directly to in-house loans, but as excessive in-house lending can heighten instability in the housing market, we hope to see broader voluntary management efforts by corporations, including first-priority blanket mortgage registration, principal-and-interest amortization, limits on lending to owners of multiple dwellings, restrictions on high-priced dwellings, and dwelling size limits."