Household loans extended by South Korean financial institutions declined for the first time in 11 months in January as mortgage and credit loans fell, the central bank said Tuesday.
Outstanding household lending by local banks and non-bank institutions totaled 685.2 trillion won ($643.6 billion) as of end-January, down 2 trillion won from the previous month, according to the Bank of Korea.
Such lending declined for the first time since February last year when household loans fell by 1.8 trillion won.
The BOK said that home-backed loans declined due to an end to tax benefits over home purchases and credit lending fell as receipt of year-end bonuses curbed demand for such loans.
Depository institutions’ mortgage loans fell by 100 billion won on-month to 418 trillion won and credit lending declined by 1.9 trillion won to 267.2 trillion won, it added.
Local banks’ household loans fell 2.6 trillion won on-month to 478.5 trillion won, the central bank said. (Yonhap)
