Household credits increased 11.0 trillion won in the first quarter to reach a record high of 1,611.3 trillion won as of end-March, the Bank of Korea announced on May 20.
The bank said household loans increased by 17.2 trillion won during the quarter, while merchandise credits decreased by 6.1 trillion won.
The growth in household loans was led by household mortgage loans, which amounted to 15.3 trillion won in the first quarter.
The bank said the growth in household mortgage loans reflected an increase in housing transactions following the government’s strengthening of the real estate regulations.
It also said that the drop in merchandise credits reflects a contraction in consumption due to the COVID-19 outbreak.
As of end-March, total household loans outstanding amounted to 1,521.7 trillion won, with household mortgage loans accounting for 858.2 trillion won.