The Bank of Korea and the Financial Services Commission announced on Nov. 12 that household loans in the financial sector increased by 8.1 trillion won in October this year whereas the increase stood at 3.2 trillion won in the previous month. They explained that credit card payments during the Thanksgiving holidays and loans related to moving resulted in the largest increment since October last year, when household loans increased by 10.4 trillion won.
The rapid increase was led by an increase in household loans in the banking sector. Specifically, the amount rose 7.2 trillion won to 874.1 trillion won last month whereas it rose 4.8 trillion won in September this year.
The household loans in the financial sector did not significantly increase in September after continuing to increase in the spring of this year. However, mortgage loans in particular showed an increase of 4.6 trillion won in October, which is this year’s high.
The other loans including credit loans increased by 2.5 trillion won last month after an increase of 1 trillion won in the previous month. In addition, those in the non-banking sector, which decreased 1.6 trillion won in September, rose 2.6 trillion won last month.