Korea’s household credit growth slowed in the fourth quarter of last year as the real estate market remained weak amid high borrowing costs.
Starting on Tuesday, individuals can switch residential mortgage and jeonse loans to lower interest rates online, eliminating the need to visit a bank.
Cofix, or the Cost of Funds Index, a benchmark lending rate for mortgage loans, came to 3.82 percent in September, up 0.16 percentage points from a month earlier, according to the data from the Korea Federation of Banks.
Korea’s household debt growth slowed in September, rising 2.4 trillion won ($1.8 billion) from a month earlier, amid stricter loan measures by the financial authorities, showed Financial Services Commission (FSC) data on Thursday.
The Financial Services Commission plans to implement stricter rules on mortgage lending to address the surge in household debt driven by an increase in housing-related loans.
Young Koreans are seemingly untroubled when it comes to going into debt. Householders under 29 years of age had 50 million won ($37,500) in debt on average in 2022, up 41.2 percent on year, according to Statistics Korea.
Household loans grew three months in a row to June led by soaring demand for housing.
Korea’s dual-income newlyweds are disguising their legal marital status to avoid stricter standards on social benefits. Married couples in Korea are at a disadvantage compared to singles when it comes to house subscriptions and loans.
The Rocket Mortgage Classic is a special tournament for Korean golf rising star Tom Kim, also known as Kim Joo-hyung.
Financial authorities warn that risks remain in the property market despite some signs of recovery.
Korea JoongAng Daily Sitemap