Bank of Korea reports faster household credit growth

The Bank of Korea said preliminary data showed household credit rose by 25.9 trillion won in the second quarter as mortgage-related lending expanded and other loans rose at deposit-taking banks.

Outstanding household credit stood at 2020 trillion won at the end of the second quarter. The measure combines loans from financial institutions with purchase credit extended by sellers and service providers. Household loans rose by 24.9 trillion won to 1891 trillion won.

Mortgage-related loans increased by 12.2 trillion won, compared with an 8.1 trillion won increase in the first quarter. Other loans rose by 12.8 trillion won after increasing by 5.4 trillion won in the first quarter.

At banks, household loans increased by 13.3 trillion won after a 200 billion won decline in the first quarter. Mortgage-related loans there rose by 6.8 trillion won and other loans increased by 6.5 trillion won. Non-bank deposit-taking institutions added 3.1 trillion won, as mortgage-related loans rose by 3.6 trillion won, less than the 10.6 trillion won increase in the first quarter, while other loans fell by 500 billion won after a 2.5 trillion won decline. Other financial institutions added 8.6 trillion won after adding 5.5 trillion won in the first quarter. Their mortgage-related loans rose by 1.8 trillion won after declining by 2.9 trillion won, while other loans increased by 6.8 trillion won.

Purchase credit rose by 900 billion won to 128 trillion won, down from a 1.4 trillion won increase in the first quarter. Specialized credit-finance companies added 1 trillion won in purchase credit, while purchase credit from sales companies fell by 100 billion won.