Mostly Mortgages
According to depository financial institutions, household debt surged by more than 10 trillion won (US$8.93 billion) in a month.
The Bank of Korea announced on June 9 that household debt by depository financial institutions increased by 10.1 trillion won (US$9.02 billion) to 765.2 trillion won (US$683.28 billion) from a month ago.
This is the greatest increase since records started being collected in 2003. In particular, a 10 trillion won (US$8.93 billion) increase is unprecedented. The previous highest increase was 7.8 trillion won (US$6.96 billion) in Oct. last year.
The amount of mortgage loans increased by 8 trillion won (US$7.14 billion), leading the total increase in household debt. Other loans, including credit line loans, also increased by 2.1 trillion won (US$1.88 billion). Household debt by deposit banks grew 8.7 trillion won (US$7.77 billion), while that of non-banking depository financial institutions increased 1.4 trillion won (US$1.25 billion).