The outstanding balance of household loans in all financial sectors rose KRW10.1 trillion from the previous month at the end of January 2021 (up 8.5% y-o-y). The household loan balance increased KRW7.6 trillion in the banking sector and KRW2.5 trillion in the non-banking sector.
By type, mortgage loans rose KRW5.8 trillion in January, declining KRW0.9 trillion from the previous month (up KRW6.7 trillion y-o-y). In the banking sector, mortgage loans grew KRW5.0 trillion while mortgage lending by non-banks increased KRW0.8 trillion from the previous month. Other types of loans rose KRW4.3 trillion as demand for credit loans remained high.
The financial authorities will closely monitor trends in credit loans while ensuring a seamless provision of lending support to businesses hit by social distancing measures. In the first quarter, the authorities will come up with a more effective household debt management plan focusing on individual DSR.
* Please refer to the attached PDF for details.