[서울신문] Even in the new year,’Everyone’ and’debt’… January household loans approaching 1,000 trillion won

Bank loan balance of 996.4 trillion… 7.6 trillion increase
The largest increase in history as of January is exceptional
726.9 trillion won The largest increase in January
268.6 trillion of credit loans… 3 trillion’leaps’ in a month

As of last month, the accumulated household loans for banknotes reached 1,000 trillion won. This is the result of the new year’s ‘Eternal Loan’ for real estate (a loan that attracts the soul), and ‘debt investment’ (investing in stocks due to debt), which draws on credit loans even during the period of government loan confinement.

According to the Bank of Korea’s’Financial Market Trends in January’ on the 10th, the balance of household loans for banks last month was 99.6 trillion won, an increase of 7.6 trillion won from the previous month (988.8 trillion won). This is the largest increase since the 2004 statistics as of January.

It is pointed out that this is unusual considering that household loan demand is not large at the beginning of the year. This is because January is the off-season for housing transactions, and there are bonuses at the end of the year and beginning of the year. The increase in household loans last month was significantly greater than in January 2018 (2.7 trillion won), January 2019 (1.0 trillion won), and January 2020 (3.7 trillion won).

The rise in household loans was driven by mortgage loans. Last month, mortgage loans increased by 5 trillion won a month to 726 trillion. It is less than last December (6.3 trillion won), but the largest increase in January. It is analyzed as the continued influence of the demand for housing sales and charter-related funds that have continued since the end of last year. The nationwide apartment sales volume was 83,000 units in December last year, and 35,000 units for jeonse transactions, which were similar to those of November (89,000 units and 38,000 units).

Other loans, mostly credit loans, also contributed to the increase in household loans. As of last month, the cumulative other loans were 26.8 trillion won, an increase of 2.6 trillion won from the previous month. The increase in December decreased to 400 billion won due to credit loan regulations by financial authorities at the end of last year, then jumped to 3 trillion won again in one month. It is an analysis that the demand for’debt investment’ and the resumption of the sale of credit loan products that commercial banks temporarily suspended at the end of last year had an effect. The BOK said, “Housing mortgage loans have increased significantly since December as demand for housing sales and charter-related funds continued. Other loans expanded to demand for funds related to housing transactions or stock investment.” Credit loans were resumed, and the demand to obtain some loans in advance due to concerns about tightening regulations on loans in the future was partly affected.”

Household loans for the entire financial sector also increased significantly. According to the’Household Loan Trends in January’ announced by the Financial Services Commission and the Financial Supervisory Service on the day, household loans in all financial sectors including banks and second financial sectors increased by 10 trillion won (8.5%) from the previous month. The increase was nearly five times compared to the same month last year (2,200 billion won), and the increase was larger than that of December (8,800 billion won). Mortgage loans for all financial sectors increased by 5.5 trillion won compared to the previous month. The increase was reduced by 900 billion won from last December (6.7 trillion won), but it increased by 3 trillion won from a year ago (2.8 trillion won). Other loans also increased by 4.3 trillion won. It surged more than five times from the same month last year (800 billion won).

Reporter Seung-Hoon Kim [email protected]