SEOUL, Nov. 8 (Yonhap) — Banks in South Korea saw a steady rise in household loans during October, with the total amount reaching 1,086.6 trillion won (US$833.6 billion). This marks the seventh consecutive month of increase, according to data from the Bank of Korea (BOK).
Home-backed loans saw the largest increase, with a rise of 5.8 trillion won to 839.6 trillion won, while unsecured and other types of loans rose 1 trillion won to 245.7 trillion won.
The rise in borrowing costs in the Asian nation has been attributed to the central bank’s aggressive monetary tightening efforts to control inflation. Despite this, the Financial Services Commission (FSC) has expressed concern over the growth of household loans due to the pressure it is putting on the economy.
The FSC noted that while the rate of increase in home-backed loans had slowed, there was still a need to keep monitoring the situation. Banks’ loans to companies also continued to rise in October due to high demand.
This file photo, taken July 18, 2023, shows information about a bank’s loan programs in Seoul. (Yonhap)