The outstanding balance of household loans in all financial sectors rose KRW14.0 trillion from the previous month in August 2020 (up 6.2% year-on-year).

By type, mortgage loans increased KRW6.3 trillion in August, rising KRW2.0 trillion from the previous month (up KRW3.1 trillion y-o-y). In the banking sector, jeonse loans rose KRW3.4 trillion and mortgage loans expanded KRW1.9 trillion. Mortgage lending by non-banks saw a rise of KRW200 billion from the previous month. Other types of loans went up KRW7.7 trillion as credit-based lending by both banks and non-banks rose KRW5.7 trillion and KRW2.0 trillion, respectively.

The financial authorities are closely monitoring trends in household loans to see whether the recent spike is a temporary phenomenon or a more permanent trend. Based on the comprehensive assessment, the government will draw up measures to systematically manage household loans.

* Please refer to the attached PDF for details.