Household Loans, December 2021Jan 13, 2022

The outstanding balance of household loans in all financial sectors rose KRW0.2 trillion from the previous month at the end of December 2021, showing a significant decline in the growth rate. The household loan balance dropped KRW0.2 trillion in the banking sector while rising KRW0.4 trillion in the non-banking sector. The grow rate across all financial sectors in 2021 was 7.1 percent, a slowdown from 8.0 percent in the previous year.


Household Loans (in trillion won): 8.6 (Aug 2021) → 7.8 (Sep) → 6.1 (Oct) → 5.9 (Nov) → 0.2 (Dec)


By type, mortgage loans rose KRW2.6 trillion in December, declining from KRW3.9 trillion in the previous month due to a slowdown in housing transactions. Other types of loans including credit loans fell KRW2.4 trillion with the end of the year effect.

The accelerated growth rate in household loans over the past two years amid the pandemic appears to have entered a stable path with the overall growth rate standing at 7.1 percent in 2021. The financial authorities will continue to work on various measures to contain the household debt growth to ensure effective risk management while allowing a continuation of credit extension to the financially vulnerable groups.

* Please refer to the attached PDF for details.

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