The outstanding balance of household loans across all financial sectors dropped KRW0.2 trillion from the previous month at the end of February 2022 (up 5.6% y-o-y), showing a continuous slowdown from the second half of 2021. Both the banking and nonbanking sectors saw the balance of loans falling KRW0.1 trillion each in the household sector.
* All financial sectors (y-o-y): +8.6% (Oct 2021)→+7.7% (Nov)→+7.1% (Dec)→+6.3% (Jan 2022)→+5.6% (Feb)
By type, mortgage loans rose KRW2.6 trillion in February, showing a steady decline in the pace of the growth compared to the previous month (up KRW2.9 trillion). Other types of loans including credit loans fell KRW2.9 trillion,declining steadily since December 2021. In the banking sector, mortgage loans rose KRW1.8 trillion but other types of loans including credit loans fell KRW1.9 trillion.
The balance of household loans in February shows a steady decline from the previous month. Mortgage loan is growing at a slower rate and credit loan has fallen continuously due to the household debt control measures put in place and a drop in housing transactions. The financial authorities will continue to make efforts to stably manage the growth of household debt.