Major banks' household loan grows sharpest in 11 months in June
Passersby walk in front of promotional posters for loans at a bank in Seoul, June 24. Yonhap
Household loans at major Korean banks increased by the largest amount in 11 months in June as borrowers took out more credit for stock investments and to finance home purchases, data showed Wednesday.
Outstanding household loans at five major lenders — KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank and NH Nonghyup Bank — stood at 774.96 trillion won ($497.4 billion) as of June, up 4.137 trillion won from a month earlier, according to data compiled by the banks.
The June lending growth marks the highest since July last year when their household loans gained 4.138 trillion won.
The increase in borrowing was driven largely by unsecured credit loans, as investors borrowed more funds to capitalize on a rally in the stock market.
Outstanding credit loans rose 2.16 trillion won last month.
Rising home prices and increased home transactions also fueled demand for borrowing.
Outstanding mortgage loans at the five banks climbed to a record 615.15 trillion won as of end-June, up 1.76 trillion won from the end of May.