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[BUSINESS] · South Korea · 5 sources

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South Korean major banks see decline in household loans

South Korean household loans at five major banks—KB Kookmin, Shinhan, Hana, Woori, and NH NongHyup—fell in September for the first time in six months. Outstanding loans reached 781.39 trillion won, a decrease of 727.6 billion won from the end of August.

Despite the government increasing the annual household loan growth target to 7.1 trillion won, major lenders have maintained strict self-imposed restrictions. This has led to continued difficulty for borrowers, with some banks reporting that even after reopening applications for mortgage and jeonse loans, demand quickly exhausted available quotas.

Data indicates that while total loan growth has slowed, a balloon effect is occurring as demand shifts toward the insurance sector. Additionally, mortgage loans saw a decline, dropping to 620.5 trillion won from 621.2 trillion won at the end of August. Industry officials suggest that mortgage growth may regain momentum once supply resumes through collective lending.

Entities

Financial Services Commission · Hana Bank · KB Kookmin Bank · NH Nonghyup Bank · Shinhan Bank · Woori Bank

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