Last month, the balance of card loans from domestic credit card companies saw a slight decrease just one month after reaching an all-time high. This decline is attributed to the financial authorities' strengthened management of household loans.
According to the Credit Finance Association on July 22, the balance of card loans from nine credit card companies (Samsung, Shinhan, Hyundai, KB Kookmin, Lotte, Woori, Hana, BC, and NH Nonghyup Card) was recorded at 42.9093 trillion won at the end of June, a decrease of 344.1 billion won from the previous month's record high of 43.2534 trillion won.
Card loan balances have steadily increased this year, except for April, and reached a peak in May. However, as financial authorities intensified their management of household loans, the growth trend appeared to have slowed last month. The credit industry aims to manage the growth rate of household loans, including card loans, at around 1.5% for the year.
The repayment burden for delinquent borrowers remains significant. The balance of refinancing loans, which are taken out by borrowers unable to repay their card loans, decreased to 1.5485 trillion won from the previous month's 1.6558 trillion won, a drop of 107.3 billion won.
In contrast, the balance of revolving credit increased to 68.321 trillion won, up 32.3 billion won from the previous month’s 67.998 trillion won. The balance of cash services also rose to 67.842 trillion won, an increase of 280.5 billion won from the previous month’s 65.037 trillion won, indicating continued demand for short-term funds.
* This article has been translated by AI.
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