Korea’s household credit hits new high in Q3

Household credit in South Korea extended its record-breaking streak to the third quarter, with its quarterly growth picking up from three months earlier on increased mortgage lending, data showed Tuesday.

Household credit totaled 1,060.3 trillion won ($952.5 billion) as of end-September, up 22 trillion won from a revised 1,038.3 trillion won in the second quarter, according to the Bank of Korea.

The third-quarter gain is nearly double the 13.4 trillion won increase in the previous quarter. It also marks the sharpest growth in terms of amount since the fourth quarter of last year when household credit jumped 27.7 trillion won over the quarter.

Household credit refers to credit purchases and loans extended by financial institutions, including commercial lenders and mutual savings banks.

The on-quarter growth was attributed to an increase in mortgage loans. (Yonhap)