$809 billion household debt with South Korean banks by the end of July

Data from the Central Bank of Korea showed that household debt provided by banks in South Korea rose for the fourth consecutive month in July due to increased demand for mortgages amid rising borrowing costs, and amounted to 1,068.1 trillion won (808.9 billion dollars) by the end of July, up 6 trillion from the previous month.

The bank explained – as reported by the South Korean news agency (Yonhap) – on Saturday, that the yield for July represents an increase on a monthly basis for the fourth consecutive month after an increase of 5.8 trillion won in June, 4.2 trillion won in May, 2.3 trillion won in April, and also represents the largest increase in 22 months after a jump of 6.4 trillion won in September 2022.

Mortgage loans at banks increased by 6 trillion won on a monthly basis to 820.8 trillion won in July, while unsecured loans and other types decreased by 10 billion won to 246.1 trillion won during the said period.
In July, the central bank kept its key interest rate at 3.5 percent for the fourth time in a row after freezing it in February, April and May, amid uncertain growth forecasts and moderate inflation.

The interest rate freeze came after the central bank raised it 7 times in a row since April last year.