South Korea Household Debt Breaks 1,200T Won Barrier
(MENAFN) South Korean household borrowing from banks surged past 1,200 trillion won for the first time in October, as strong demand for both mortgages and other loans pushed growth sharply higher, data from the Bank of Korea (BOK) showed on Wednesday.
Household debt at deposit-taking banks stood at 1,203.9 trillion won (902.2 billion U.S. dollars) at the end of October, a 5.0 trillion won increase from the previous month. That is a steep jump from September’s gain of just 0.5 trillion won.
Mortgages backed by homes drove much of the rise, climbing 3.3 trillion won to 958.7 trillion won. The increase outpaced September’s 2.9 trillion won expansion.
Housing completions likely played a role. Move-ins at newly built apartments nationwide rose to 19,000 in October from 13,000 in September.
Other household loans, a category that includes unsecured credit loans, credit lines and loans backed by commercial real estate, grew by 1.7 trillion won to 244.3 trillion won. The result marks a rebound from a 2.3 trillion won decline in September.
Lending to businesses also expanded. Corporate loans from deposit-taking banks reached 1,451.8 trillion won at the end of October, up 10.2 trillion won from a month earlier.
Household debt at deposit-taking banks stood at 1,203.9 trillion won (902.2 billion U.S. dollars) at the end of October, a 5.0 trillion won increase from the previous month. That is a steep jump from September’s gain of just 0.5 trillion won.
Mortgages backed by homes drove much of the rise, climbing 3.3 trillion won to 958.7 trillion won. The increase outpaced September’s 2.9 trillion won expansion.
Housing completions likely played a role. Move-ins at newly built apartments nationwide rose to 19,000 in October from 13,000 in September.
Other household loans, a category that includes unsecured credit loans, credit lines and loans backed by commercial real estate, grew by 1.7 trillion won to 244.3 trillion won. The result marks a rebound from a 2.3 trillion won decline in September.
Lending to businesses also expanded. Corporate loans from deposit-taking banks reached 1,451.8 trillion won at the end of October, up 10.2 trillion won from a month earlier.
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