Q3 household debt hits record high: The DONG-A ILBO

South Korean household debt topped 1.87 trillion won, again hitting a record high. Household borrowing, however, reversed downward as demand for mortgages fell.

At the end of September, total household credit outstanding rose 2.2 trillion won from the end of June to 1.87 trillion won, according to the Bank’s third-quarter household credit report. from Korea. The increase was reduced from the second quarter (5.5 trillion won). Even compared with a year earlier, outstanding household loans rose just 25.1 trillion won, registering the smallest annual gain since the dataset began in 2003.

Household credit refers to credit extended by commercial banks and insurance companies to households plus purchases on credit. Total outstanding household debt, which accounts for the largest proportion of household credit, fell 300 billion won to 1,756.8 trillion won. Household debt fell by 800 billion won in the first quarter of the year, hitting the second lowest since the start of the dataset. The increase in mortgage loans fell (6.5 trillion won) from the previous quarter (8.7 trillion won), and mortgage loans also fell by 6.8 trillion won, marking a fourth consecutive downward trend .

Purchases on credit hit a record high for a second consecutive quarter, with consumption trending higher thanks to the lifting of social distancing rules. Outstanding credit purchases in the third quarter rose 2.5 trillion won from the previous quarter to 113.8 trillion won, posting a record with an increase of 13.2 trillion won (13.2 %) compared to the previous year.

Min-Woo Park [email protected]

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John A. Bogar