On Wednesday, data from the Bank of Korea (BOK) showed that household loans extended by banks in South Korea had increased for the seventh month in a row in October. The total amount of outstanding household loans had come to 1,086.6 trillion won (US$833.6 billion). This was a 6.8 trillion won rise from the previous month.
The growth was driven by a 5.8 trillion won increase in home-backed loans and a 1 trillion won increase in unsecured and other types of loans. These figures come despite high borrowing costs in the country due to the BOK’s aggressive monetary tightening.
The BOK has held its key interest rate steady at 3.5 percent for the sixth consecutive time due to a slowdown in growth and other uncertainties. Last year, however, outstanding household loans had seen a decrease for the first time in 18 years due to higher rates.
Meanwhile, banks’ loans to companies also continued to rise due to high demand. Corporate loans extended by banks rose 8.1 trillion won last month, slowing from an 11.3 trillion won rise the previous month.
This file photo, taken July 18, 2023, shows information about a bank's loan programs in Seoul. (Yonhap)
sam@yna.co.kr
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