South Korea debt growth slows down

- Xinhua, SEOUL

Nov 20, 2018-

South Korea’s household debt growth slowed down for the first 10 months of this year compared with the same period for the past two years, financial regulator data showed Monday.

Debts owed by households to all financial institutions, including banks and nonmonetary institutions, increased 60.5 trillion won (53.6 billion US dollars) in the January-October period, according to data jointly unveiled by Financial Services Commission (FSC) and Financial Supervisory Service (FSS).

It was down from rises of 98.8 trillion won (87.5 billion US dollars) in the cited period of 2016 and 74.4 trillion won (65.9 billion US dollars) in 2017. It came as the financial regulator tightened standard for mortgage loans in January amid a rush among households to purchase new home with borrowed money.

The country’s central bank refrained from altering its benchmark rate since the bank raised it in November last year to the current 1.50 percent from an all-time low of 1.25 percent. To curb speculative investment in the real estate market, the government unveiled a set of measures in September.

Home-back loans rose 26.3 trillion won (23.3 billion US dollars) in the January-October period, after growing 44.5 trillion won (39.4 billion US dollars) in the 10-month period of last year.

Risk factors remained such as a fast rise in other loans, including credit loans, which jumped 34.2 trillion won (30.3 billion US dollars) for the first 10 months of this year. 

Published: 20-11-2018 08:14

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