The outstanding balance of household loans across all financial sectors rose KRW2.4 trillion in September 2023 (preliminary), growing at a slower rate than the previous month. Compared to a year ago, household loans dropped 0.3 percent.

* Change (in trillion KRW): +0.2 (Apr 2023), +2.8 (May), +3.5 (Jun), +5.3 (Jul), +6.1 (Aug), +2.4 (Sep)

(By Type)  Home mortgage loans continued to grow but at a slower rate, while other types of loans fell at an expanded level. Mortgage loans rose KRW5.7 trillion overall with a fall of KRW0.4 trillion in the nonbanking sector and an increase of KRW6.1 trillion in the banking sector. Mortgage loans from banks expanded at a slower rate compared to the previous month (up KRW7.0 trillion). Other types of loans dropped KRW3.3 trillion overall with declines seen from both the banking (down KRW1.3 trillion) and nonbanking (down KRW2.1 trillion) sectors.

(By Sector)  Household loans grew at a slower rate in the banking sector, while decreasing at a faster rate in the nonbanking sector. Banks saw a rise of KRW4.9 trillion of household loans in September, down from an increase of KRW6.9 trillion in the previous month. Mortgage loans in the banking sector grew KRW6.1 trillion overall with group lending for new apartment subscription (up KRW0.3 trillion) and jeonse loans (up KRW0.1 trillion) going up at slightly faster rates and individual mortgage loans (up KRW3.6 trillion) and policy mortgage loans (up KRW2.1 trillion) rising at slower rates. Other types of loans declined KRW1.3 trillion as credit loans dropped at a faster rate (down KRW1.2 trillion).

Household loans in the nonbanking sector dropped KRW2.5 trillion overall, edging down at a faster rate than the previous month (down KRW0.8 trillion). Insurance companies (up KRW0.3 trillion) saw an increase in household loans, but mutual financial companies (down KRW1.9 trillion), savings banks (down KRW0.1 trillion) and specialized credit finance businesses (down KRW0.8 trillion) all saw drops in household loans.

Although the pace of growth has slowed down in September, there are possibilities of household loans expanding again due to the fall moving season in October and a base effect from the decline in credit loans. Therefore, the financial authorities will continue to closely monitor trends in household loans, while working to ensure stable management through supply of household loans to only those in actual need of financing.

* Please refer to the attached file for details.