S.Korea household loans shrink by most in over a year

SEOUL  – South Korean households’ loans from banks decreased by the biggest amount in more than a year in September on rising interest rates and an extended housing market slowdown, central bank data showed on Thursday.

The country’s bank lending to households, including policy mortgage loans, shrank 1.2 trillion won ($840.96 million) in September, after a 0.3 trillion won gain in August, according to the Bank of Korea. It marked the biggest monthly decline since May 2021.

Growth in housing mortgage loans slowed to 0.9 trillion won, from 1.6 trillion won in the previous month, while other lending decreased by 2.1 trillion won, led by credit loans.

Total bank lending to households stood at one quadrillion and 59.5 trillion won as of the end of September.

($1 = 1,426.94 won)