The Financial Services Commission said on the 14th that household loans across all financial sectors rose by 620 billion won in July. Compared with the June increase of 830 billion won, the growth narrowed by 210 billion won.
By loan category, the increase in mortgage loan balances fell by 100 billion won, from 450 billion won in June to 350 billion won in July. The increase in bank mortgage loans narrowed from 430 billion won to 340 billion won, and the growth in the secondary financial sector also narrowed from 30 billion won to 10 billion won. Other loans rose by 270 billion won in July, down 110 billion won from the June increase of 380 billion won. This reflected factors including the increase in unsecured loans easing from 260 billion won to 200 billion won over the same period.
Bank household loans increased by 540 billion won in July, with growth narrowing by 220 billion won from 760 billion won in June. Banks' own mortgage loan increases declined from 290 billion won to 250 billion won, and policy loans fell from 140 billion won to 90 billion won. The increase in other loans also decreased from 330 billion won to 200 billion won. For the Didimdol and Bogeumjari support loans, fund-sourced balances fell by 70 billion won in April, followed by declines of 50 billion won in May, 60 billion won in June and 50 billion won in July.
Household loans in the secondary financial sector rose by 80 billion won in July, maintaining a growth pace similar to June. By industry, household loans at mutual finance institutions shifted from a 20 billion won increase in June to a 70 billion won decrease in July. In contrast, savings banks turned from a 20 billion won decrease to a 50 billion won increase, and specialized credit finance companies shifted from a 20 billion won decrease to a 30 billion won increase. In the insurance sector, the increase narrowed from 110 billion won to 70 billion won.
Among mutual finance institutions, household loans at credit unions expanded from a 2 billion won increase in June to a 100 billion won increase in July. NongHyup shifted from a 300 billion won increase to a 500 billion won decrease, while Suhyup turned from a 10 billion won decrease to a 4 billion won increase. The National Forestry Cooperative Federation posted a 20 billion won increase, similar to the previous month. The Korean Federation of Community Credit Cooperatives (KFCC) posted a 200 billion won decrease in July, following a similar decline in June.
Lee Eog-weon, chair of the Financial Services Commission, said, "Despite the seasonal factor of July, when demand for funds rises due to the vacation season, the slowdown in growth of mortgage loans and other loans appears to reflect active voluntary management measures implemented by financial institutions."