The outstanding balance of household loans in all financial sectors rose KRW1.8 trillion in May 2022, staying at a stable level despite a slight increase from the previous month (up KRW1.2 trillion). The financial authorities will continue to work on stably managing the growth of household debt.

(Overall)  Household loans in May 2022 increased KRW1.8 trillion across all financial sectors. The growth rate from the same month of the previous year was 3.4 percent, showing a halt in the declining trend seen from the second half of the previous year, but staying at a stable level in general.

(By Type)  Mortgage loans grew at a slower rate from the previous month but other types of loans including credit loans edged up slightly for the first time this year.

- (Mortgage Loans)  Mortgage-backed loans rose KRW1.6 trillion in May, showing a slowdown from the previous month due mainly to a drop in group lending for new apartment subscription (from KRW1.1 trillion to KRW0.2 trillion).

- (Other Types of Loans)  Other types of loans increased KRW0.2 trillion in May, edging up for the first time following a continued decline since the end of the previous year, with a growth in credit loans.

(By Sector)  Household loans in the banking sector went up at a slower rate compared to a month ago but the pace of the growth accelerated in the non-banking sector as credit finance companies and savings banks saw increases.

- (Banking Sector)  Banks saw an increase of KRW0.4 trillion in household loans, showing a decline from the previous month (up KRW1.2 trillion). Mortgage loans from banks rose KRW0.8 trillion, growing at a slower rate compared to the previous month (up KRW2.0 trillion), as jeonse loans expanded (up KRW1.1 trillion) but group lending for new apartment subscription edged lower (up KRW0.2 trillion). Other types of loans declined KRW0.5 trillion and fell at a slower rate compared to the previous month (down KRW0.9 trillion) as credit loans edged down KRW0.2 trillion.

(Assessment)  The trends in household loans continue to stay at a stable level since the beginning of this year even though the growth of KRW1.8 trillion in May 2022 was slightly higher than the previous month. Mortgage-backed loans (up KRW1.6 trillion) went up slightly during the month due to continuing demand for jeonse loans but grew at a slower pace overall compared to the previous month. Other types of loans (up KRW0.2 trillion) including credit loans edged up in May due to seasonal factors. The financial authorities will continue to make efforts to stably manage the growth of household debt in order to prevent it from posing risk to the economy.

* Please refer to the attached PDF for details.