Bank household loans see sharp June increase as mortgages, stock investment demand climbs

Household loans extended by banks rose 7.6 trillion won ($5.03 billion) in June from a month earlier amid demand linked to stock investment and mortgages, data showed Thursday.

Outstanding household loans by banks came to 1.18 quadrillion won last month, accelerating from the previous month's 6.9 trillion won rise, according to data from the Bank of Korea (BOK).

It marked the sharpest growth since a 9.2 trillion won rise posted in August 2024.

Outstanding mortgage loans increased 4.3 trillion won on month in June, reaching 945 trillion won.

Other household loans moved up 3.3 trillion won over the period to 243.5 trillion won.

"As the number of housing transactions in the greater Seoul area increased over April and May, along with demand to make interim payments for previously sold housing units, demand for mortgage loans increased sharply," a BOK official said.

The official noted other types of loans also increased as more individual investors participated in the stock market.

The official added mortgage loans are expected to continue to face upward pressure, considering property prices in Seoul and the surrounding Gyeonggi continue to show growth of more than 10 percent amid supply concerns.

Yonhap