Photo courtesy of Sava Bobov

South Korean bank’s household loans rise faster in September: report

There is an increased demand for loans for home purchases and 'jeonse.’

South Korean banks’ household loans rose to $877.9b (KRW1,052.7t) as of end-September, KRW6.5t higher than the previous month, reports Yonhap, according to data from the Bank of Korea (BOK).

The figure grew faster than the KRW6.1t won increase in August, and is the second-largest on-month expansion for September since relevant data began to be compiled in 2004.

BOK said that the rise was due to banks' unsecured and other non-mortgage loans, which grew KRW800b.

Mortgage loans stood at KRW769.8t in September, higher by KRW5.7t won from August.

"An upward trend in line with what was reported in August continued due to demand for loans for home purchases and 'jeonse,'" a BOK official reportedly said, referring to a home rental system unique to South Korea in which tenants pay a large sum of money as a deposit instead of paying monthly fees.

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