In the second quarter, banks' per capita mortgage loan new origination amount was 208.29 million won, down 21.1 million won from the previous quarter. The decline was the largest since the Bank of Korea began compiling related statistics in 2013. Due to lending regulations in the financial sector, new origination amounts fell across all age groups except people in their 20s.
On the 25th, according to the Bank of Korea (BOK), in the second quarter, new mortgage loan originations decreased across all age groups except those in their 20s. People in their 30s, who ranked first with a 43.7% share of new originations, recorded 263.58 million won, down 26.32 million won. Those in their 40s (24.5%) logged 209.77 million won, down 35.37 million won. Those in their 50s (15.9%) posted 163.41 million won, down 12.81 million won, and those 60 or older (9.9%) posted 132.93 million won, down 10.69 million won. A Bank of Korea (BOK) official said it was "the impact of financial institutions' household loans regulations."
By contrast, people in their 20s (6.0%) recorded 232.17 million won, up 3.92 million won. New mortgage loan originations by people in their 20s fell in the fourth quarter of last year, turned to an increase in the first quarter of this year, and then fell again in the second quarter. The increase was the largest since the second quarter of last year (4.84 million won). A Bank of Korea (BOK) official said it "grew mainly around first-time mortgage loan borrowing by people without dwellings."
Due to the decline in mortgage loans, overall new household loans originations also decreased. New originations in the second quarter were 34.14 million won, down 1.28 million won from the previous quarter.