The outstanding balance of household loans in all financial sectors rose KRW9.1 trillion (up 4.9% year-on-year) at the end of February 2020. The household loan balance increased KRW9.3 trillion in the banking sector (up 8.5% year-on-year) while declining KRW200 billion in the non-banking sector (down 0.7% year-on-year).

By types, mortgage loans increased KRW6.9 trillion in February (up 5.0% year-on-year). Regular mortgage loans, jeonse loans and group lending expanded KRW7.8 trillion in the banking sector, while non-banks saw a drop of KRW900 billion due to the availability of refinancing products with lower interest mortgage loans. Other types of loans rose KRW2.1 trillion (up 4.8% year-on-year) due to a rise in credit lending.

The government will closely monitor trends in household loans while implementing the mortgage loan regulations for homes valued higher than KRW900 million and managing credit lending through debt service ratio.

* Please refer to the attached PDF for details.