In August 2022, the outstanding balance of household loans across all financial sectors rose KRW0.7 trillion, edging back up slightly from a decline in the previous month but maintaining a stable level overall. The financial authorities will continue to monitor the household debt growth to ensure that it is maintained at a stable level in order to help prevent it from posing risk to the economy.

(Overall)  Household loans across all financial sectors rose KRW0.7 trillion in August 2022. The growth rate (up 1.2%, y-o-y) has continued to slow down since the second half of 2021.

(By Type)  Mortgage loans grew at a slightly faster pace than the previous month and other types of loans fell at a slower rate, leading to an overall increase in the balance of household loans.

- (Mortgage Loans)  Mortgage-backed loans rose KRW2.8 trillion in August, edging up slightly faster than the previous month (up KRW2.5 trillion), as group lending for new apartment subscription increased.

- (Other Types of Loans)  Other types of loans dropped KRW2.1 trillion in August, edging down at a slower rate compared with the previous month (down KRW3.4 trillion), as credit loans and non-housing collateral loans declined.

(By Sector)  Household loans increased from the previous month in most sectors but showed a continuous trend of slowdown in the mutual finance sector (down KRW0.5 trillion) with a drop in nonmortgage loans.

-  (Banking Sector)  Banks saw a rise of KRW0.3 trillion in household loans. Mortgage loans from banks grew KRW1.6 trillion, rising at a slower rate than the previous month (up KRW2.0 trillion), with group lending for new apartment subscription and jeonse loans going up KRW1.2 trillion and KRW0.9 trillion, respectively. Other types of loans fell KRW1.3 trillion, declining at a slower rate from a month ago (down KRW2.3 trillion), with credit loans edging down KRW0.9 trillion.

-  (Non-Banking Sector)  In August, nonbanks saw an increase of KRW0.4 trillion in household loans, led by savings banks (up KRW0.4 trillion), insurance companies (up KRW0.3 trillion) and credit finance businesses (up KRW0.2 trillion).