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Household loans by major banks rise by $1.7 billion in April

Published: 20 Apr. 2025, 12:55

Apartment complexes in Seoul [YONHAP]

Household loans extended by five major banks in Korea rose by 2.5 trillion won ($1.7 billion) this month, industry data showed Sunday.

Household loans extended by the five commercial banks, including KB Kookmin Bank, Shinhan Bank and Hana Bank, stood at 741.509 trillion won as of Thursday, according to the data from the banks.

The increase comes after the government lifted the land transaction permission system in February in some areas of Seoul's affluent Gangnam, Seocho and Songpa districts, prompting a surge in home transactions and demand for mortgage loans.

The Seoul government redesignated the areas for the permission system in March, citing the need to rein in a recent surge in household debts and home price hikes.

Home-backed loans increased by some 1.52 trillion won so far this month, also partly triggered by an anticipation of interest rate cuts.

"There is generally a greater demand for loans, while some clients seem to be borrowing money for investment as domestic and international stock markets continue to fluctuate," an industry official said.

Yonhap