In the first quarter of this year, household loans for individual borrowers increased, primarily driven by mortgage and jeonse loans.
According to preliminary statistics on household debt by the Bank of Korea released on May 22, the average new household loan amount per borrower was 35.42 million won, an increase of 990,000 won from the previous quarter. This marks a reversal from a decrease of 4.09 million won in the prior quarter.
The increase was particularly notable among borrowers in their 30s and 40s. New loan amounts for those in their 30s and 40s rose by 6.35 million won and 3.12 million won, respectively, while borrowers aged 60 and above saw a decrease of 1.8 million won, those in their 50s decreased by 1.14 million won, and those in their 20s decreased by 1.01 million won.
As the government tightens lending regulations for banks, non-bank loans increased by 3.17 million won, while bank loans decreased by 2.34 million won.
In terms of loan products, housing-related loans showed an upward trend. The new mortgage loan amount was 229.39 million won, an increase of 16.35 million won from the previous quarter. During the same period, jeonse loans and credit loans also rose by 10.48 million won and 1.2 million won, respectively.
For mortgages, borrowers in their 30s took out new loans averaging 34.57 million won, while those in their 40s borrowed an average of 12.03 million won, indicating a concentration of growth among these age groups. Regionally, increases were observed in the Seoul metropolitan area (32.48 million won), Chungcheong region (10.19 million won), and Honam region (7.95 million won).
In Seoul, the new loan amount reached 48.18 million won, an increase of 2.46 million won, marking the largest rise since the third quarter of last year. The southeastern region saw an increase of 760,000 won to 33.41 million won. However, the Gangwon and Jeju region (-5.19 million won), Daegu and Gyeongbuk region (-1.23 million won), Honam region (-590,000 won), and Chungcheong region (-260,000 won) experienced declines.
By the end of the first quarter, the average household loan balance per borrower was 97.4 million won, a slight increase of 10,000 won from the previous quarter. Borrowers in their 30s saw an increase of 1.83 million won, while those in their 40s increased by 700,000 won. The overall household loan balance also rose, primarily driven by increases in mortgage loans (+1.79 million won) and jeonse loans (+990,000 won).
Min Suk-hong, head of the Household Debt Microstatistics Team at the Bank of Korea, stated, "The increase in household loan amounts per borrower has turned around, mainly due to restrictions on mortgage limits in regulated areas and a decrease in jeonse listings, which have affected housing transactions. This has led to an increase in both mortgage and jeonse loans."
He added, "The rise in new loan amounts from non-banks is primarily centered around mortgages, but the impact of previous transactions before the suspension of group loans and recruitment loans from mutual finance institutions should also be considered."
Min also noted, "Given the strengthened management of household debt, future increases are expected to be limited, and the ongoing expansion of regulations suggests a low correlation with the expansion of non-bank loans."
* This article has been translated by AI.
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