South Korea’s Household Borrowing Growth Slows in September
South Korea Sees Smaller Increase in Household Borrowing
In September, South Korea experienced its sixth consecutive month of household borrowing growth, although the increase was smaller compared to the previous month, according to data from the Bank of Korea (BOK). At the end of September, total household borrowing from banks stood at 1,079.8 trillion won ($806.12 billion), reflecting a rise of 4.9 trillion won from the end of August.
First Slowdown in Growth Since April
This smaller increase in household borrowing represents the first slowdown in growth since April when the upward trend began. In August, there was a larger increase of 6.9 trillion won, indicating a deceleration in borrowing growth. The BOK attributes this slowdown to financial institutions tightening loan criteria and a decline in other loans due to seasonal factors, such as the impact of holiday bonuses.
Mortgage Loans and Other Loans Affected
Growth in mortgage loans softened as financial institutions imposed stricter loan criteria, while other loans experienced a sharper decline. The BOK explains that factors such as holiday bonuses contributed to the decline in other loans. These factors, combined with tightened loan criteria, have contributed to the smaller increase in household borrowing in September.
It is important to note that the Bank of Korea’s data reveals a trend of slowing growth in household borrowing, indicating potential shifts in the country’s economic landscape.
($1 = 1,339.5000 won)