As banks tighten lending management, new household loans per borrower have decreased in the second quarter. Mortgage loans have also declined, particularly in the metropolitan area.
According to the Bank of Korea's 'Household Debt Statistics by Borrower' released on August 25, the average new household loan amount per borrower in the second quarter was 34.14 million won, down 1.28 million won from the previous quarter. This marks the lowest level since the first quarter of 2023.
After a decrease of 4.09 million won in the fourth quarter of last year, new household loan amounts showed an upward trend in the first quarter of this year, but reverted to a decline in the second quarter.
By sector, non-banking institutions saw a decrease of 14.39 million won, while other sectors dropped by 2.4 million won. In contrast, banks increased by 3.42 million won.
Focusing solely on mortgage loans, the average new amount was 208.29 million won, a decrease of 21.1 million won from the previous quarter.
By age group, borrowers in their 40s saw a reduction of 35.37 million won, those in their 30s decreased by 26.32 million won, and those in their 50s dropped by 12.81 million won. Conversely, borrowers in their 20s increased by 3.92 million won, the only age group to show growth.
Min Sook-hong, head of the Household Debt Microstatistics Team at the Bank of Korea, explained, "The 20s demographic has a relatively high proportion of first-time homebuyers and renters, which means they face less stringent regulations on these types of loans, contributing to the increase in borrowing among this age group."
The share of new mortgage loans for those in their 30s rose to 43.7%, up from 41.4% in the previous quarter. Borrowers in their 40s accounted for 24.5%, while those in their 50s made up 15.9%. The share for the 20s, which was the only age group to see an increase, remained at 6%.
Regionally, the metropolitan area saw a decrease of 43.97 million won, along with Gangwon and Jeju (-21.08 million won) and the southeastern region (-9.42 million won). In contrast, the Honam region experienced an increase of 11.13 million won.
Min noted, "Due to lending limit regulations, the housing transaction trends in the metropolitan area this year have shifted towards mid- to low-priced homes, which likely contributed to the decline. In the Honam region, some areas like Jeonju and Gwangju saw increases in loans due to new housing developments, unlike other regions."
Excluding new loans, the average household loan balance per borrower in the second quarter was 97.90 million won, an increase of 500,000 won from the first quarter. During the same period, the mortgage balance rose to 161.93 million won, up 1.87 million won.
By age group, mortgage balances increased for all, with those in their 20s rising by 5.75 million won and those in their 30s by 4.09 million won. Regionally, all areas saw increases, including Chungcheong (+1.82 million won), Gangwon and Jeju (+1.66 million won), and the metropolitan area (+1.58 million won).
The average mortgage balance was highest among those in their 30s at 234.19 million won, followed by those in their 20s at 100.39 million won and those in their 40s at 185.86 million won.
* This article has been translated by AI.
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