Korea Business News Agency - NSP NEWS AGENCY.

(Seoul=NSP NEWS AGENCY) = With household loans from depository banks totaling KRW 959.2 trillion through the third quarter of this year, it is expected to exceed KRW 1,000 trillion by the end of the year.

In relation to this, the Bank of Korea emphasized that “it is natural for household debt to increase as the economic structure expands,” and that “what is important is for household debt to gradually achieve downward stabilization within the GDP growth rate.”

According to the ‘Household Credit(Preliminary) for the Third Quarter of 2024’ released by the Bank of Korea on the 19th, household loans up to the third quarter amounted to KRW 1,795.8 trillion. Of that, the balance of housing mortgage loans was tallied at KRW 1,112.1 trillion.

The increase in household loans increased from KRW 13.3 trillion in the second quarter to KRW 16 trillion in the fourth quarter. While deposit banks increased by KRW 22.7 trillion compared to the end of the previous quarter, non-bank deposit-taking institutions and other financial institutions decreased by KRW 1.7 trillion and KRW 4.9 trillion, respectively.

In particular, mortgage loans increased sharply by KRW 22.2 trillion in deposit banks to KRW 720.5438 trillion, and non-bank deposit handling institutions continued to decline from the first quarter to the second quarter, but increased by KRW 900 billion in the third quarter to KRW 104.936.2 trillion.

In relation to this, the head of the Bank of Korea’s financial statistics team explained, “As the economic structure grows, it is natural for household debt to increase,” and “If household debt is drastically reduced, it could have a negative impact on consumption and the real economy.”

Meanwhile, the ratio of household debt to GDP is currently 91.1% as of the second quarter.

By Soon-ki Lee(s8789@nspna.com) and Soo-in Kang(sink606@nspna.com)

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