In July, bank loans related to dwellings (mortgage loan, jeonse deposit loans, etc.) increased by 3.4 trillion won, narrowing from the previous month's 4.3 trillion won, the Bank of Korea said on the 14th. Real estate transactions increased mainly in the greater Seoul area, but the number of jeonse listings fell. Jeonse deposit loans decreased by 800 billion won in July. The number of jeonse transactions hit 48,000 in March, then fell to 41,000 in April, 39,000 in May, and 36,000 in June.
According to the "July financial market trends" released that day by the Bank of Korea, banks' household loans totaled 5.4 trillion won, with the increase narrowing from 7.6 trillion won the previous month. However, compared with the same month a year earlier (2.7 trillion won), the level remains high.
Other loans, including unsecured loans, came to 2 trillion won in July, slowing from 3.3 trillion won the previous month. As the domestic stock market underwent a correction, individual stock investing decreased. Individuals' net stock purchases shrank from 52 trillion won in June to 3.4 trillion won in July.
Due to the domestic stock market decline, receipts by asset management companies (securities firms, private equity funds, etc.) also fell by 42.8 trillion won. As the KOSPI index fell, the valuation of held stocks declined. In particular, equity funds decreased by 56.2 trillion won, and other funds such as derivatives fell by 13.8 trillion won. However, the Bank of Korea said, "New money inflows continued in July, with equity funds recording 11.4 trillion won."
Banks' receipts also fell by 30 trillion won. That is because demand deposits, which can be deposited and withdrawn at any time, decreased by 80.8 trillion won. This is the largest drop on record since the Bank of Korea began compiling related statistics. The Bank of Korea explained that major conglomerates moved surplus funds from demand deposits into time deposits. A Bank of Korea official said, "A similar-sized decline occurred in July 2024," adding, "There are seasonal factors, so it does not appear unusual."
Time deposits increased by 42.3 trillion won. Banks boosted deposits to secure funding for loans. Money market funds (MMFs) were found at 27.2 trillion won. The Bank of Korea explained that although corporate funds flowed out in the previous month (a 29.3 trillion won decrease), they flowed back in, leading to an increase.