The outstanding balance of household loans in all financial sectors increased KRW15.2 trillion from the previous month at the end of July 2021 (up 10.0% y-o-y). The household loan balance rose KRW9.7 trillion in the banking sector and KRW5.6 trillion in the non-banking sector.
All financial sectors (y-o-y): +9.6% (May 2021) → +9.7% (Jun 2021) → +10.0% (Jul 2021)
By type, mortgage loans grew KRW7.5 trillion in July, rising at a faster rate compared with the previous month (up KRW6.4 trillion y-o-y) due to a steady rise in demand for jeonse loans. Other types of loans including credit loans expanded KRW7.7 trillion due to increased demand for large scale IPO subscriptions in the last week of July.
The financial authorities will work to ensure that the pace of growth in household loans remains within the target of 5 to 6 percent for this year while also working to effectively implement the household debt management measures.
* Please refer to the attached PDF for details.