Bank of Korea reports lower per-borrower household lending

The Bank of Korea said that new household lending per borrower fell by 1.28 million won from the prior quarter to 34.1 million won ($24,728) in the second quarter, as lending fell among borrowers in their 40s and for mortgages.

Compared with the prior quarter, new lending per borrower dropped by 5.83 million won for borrowers in their 40s and by 14.4 million won at nonbank lenders. Lending per borrower in the capital region fell by 1.93 million won. New mortgage lending per borrower fell by 21.1 million won from the prior quarter to 208 million won ($150,869), led by declines of 35.4 million won among borrowers in their 40s and 26.3 million won among those in their 30s.

Outstanding household debt edged higher to 97.9 million won ($70,911) per borrower at the end of the second quarter, up 500,000 won from the prior quarter, as mortgage and jeonse loans increased. From the prior quarter, household-loan balances rose by 620,000 won among borrowers in their 40s and 490,000 won among those in their 30s, but fell by 930,000 won among those in their 20s and 360,000 won among those aged 60 and over. Mortgage debt per borrower rose across every age group and region.

Total household credit stood at 2,019.8 trillion won at the end of the second quarter, up 25.9 trillion won from the prior quarter. Household loan balances rose by 24.9 trillion won to 1,891.3 trillion won.