Banks' household loan growth quickens in April

South Korean banks' household loans grew at a faster clip in April, as money chased after initial public offerings, central bank data showed Wednesday.

The value of outstanding bank loans to local households came to 1,025.7 trillion won ($912.2 billion) as of end-April, up 16.1 trillion won from the previous month, according to the data from the Bank of Korea (BOK).

The April reading represents a hike from a 6.5 trillion-won gain in March.

The BOK said the rise in lending was mainly attributable to demand for an initial public offering of battery maker SK IE Technology Co.

Banks' mortgage loans grew 4.2 trillion won on-month to 743.2 trillion won in April.

South Korea has unveiled a set of measures to cool the overheated housing market but has failed to stabilize home prices.

Non-mortgage loans rose 11.8 trillion won last month, sharply accelerating from a 800 billion won increase in March.

Unsecured loans accounted for the bulk of banks' non-mortgage lending. South Korean households rushed in recent months to borrow money to meet demand for property-related costs and subscribe to initial public offering shares.

The financial regulator is seeking to tighten regulations on unsecured loans as excessive demand for credit loans is feared to hurt households' debt-serving capacity and banks' financial soundness. (Yonhap)