The government couldn’t stop’debts’… Bank household loans 7.6 trillion won in January

Input 2021.02.10 12:00

Headquarters and credits, both maximum in January
10 trillion corporate loans… Continued support for China

Bank’s household loan growth last month hit a record high as of January. In spite of the government’s intensive’loans tightening’, credit loans for stock investment have expanded, and demand for home sales and jeonse continued.

According to the’Financial Market Trends in January 2021′ released by the Bank of Korea on the 10th, the balance of household loans (including policy mortgage loans) last month was 99.6 trillion won, an increase of 7.6 trillion won from a month ago. This is the largest increase as of January since the start of statistics collection in 2004.

Other loans, including home mortgage and credit loans, which constitute household loans were KRW 5 trillion and KRW 2.6 trillion, which was the highest in January. Mortgage loans continued to increase at the beginning of the year as demand for housing sales and jeonse funds continued. Among them, the jeonse loan was 2.4 trillion won, similar to the previous month (2.8 trillion won).

At the end of last year, home sales and jeonse transactions showed high levels, and the amount of loans seems to have increased significantly last month. The nationwide apartment trading volume was 83,000 units in December and 35,000 units for jeonse, similar to November (89,000 units and 38,000 units).

Other loans increased by 2.6 trillion won last month. Other loans, which decreased by 600 billion won in January of last year, recorded a high increase due to the demand for funds related to stock trading and stock investment. Compared to the previous month (400 billion won), it also increased significantly. Even after the implementation of the credit loan management plan was announced in November last year, demand for’debt investment (investing in debt)’ continues.

Last month, corporate loans from banks increased from the previous month to 10 trillion won. This is the second increase since the statistics were prepared in June 2009 as of January. In particular, SME loans increased by 6.6 trillion won, the highest level in January. Financial support from banks and policy financial institutions continued and the demand for funds to pay VAT was reflected. Loans to large corporations turned upward to 3.30 trillion won as they retreated loans that were temporarily repaid in the previous month.