The outstanding balance of household loans in all financial sectors rose KRW2.8 trillion (up 5.4% year-on-year) at the end of April 2020. The household loan balance increased KRW4.9 trillion in the banking sector (up 9.2% year-on-year) while declining KRW2.1 trillion in the non-banking sector (down 0.8% year-on-year).

By types, mortgage loans increased KRW4.7 trillion in April (up 5.8% year-on-year). Regular mortgage loans, jeonse loans and group lending expanded KRW4.9 trillion in the banking sector, while non-banks saw a drop of KRW200 billion due to the availability of refinancing products with lower interest mortgage loans. Other types of loans declined KRW2.0 trillion (up 4.8% year-on-year) due to a drop in credit lending.

The government will closely monitor trends in household loans amid the ongoing COVID-19 pandemic.

* Please refer to the attached PDF for details.