Household lending to South Korean banks increased for the fifth month in August

Central bank data showed on Wednesday that household lending to South Korean banks increased for the fifth month in a row due to high demand for mortgage loans.
Household debt to banks receiving deposits increased by 6.9 trillion won (5.2 billion US dollars) compared to the previous month to reach a new record high of 1.075 trillion won at the end of August, according to the Central Bank of Korea.
Household lending has risen since April as demand for mortgage loans has increased amid expectations that the Central Bank of Korea will not want to raise interest rates in the foreseeable future.
The Central Bank of Korea has left its key interest rate unchanged at 3.50 percent since January after raising it by 3.0 percentage points over the past year and a half.
Mortgage loans to banks expanded by 7 trillion won last month, maintaining the upward trend for the sixth month in a row regarding the supply of government-backed mortgage loans to support the struggling housing market.
Other loans to households, including line of credit and commercial loans backed by real estate, fell by 100 billion won in the said month.
Banks ‘ loans to companies amounted to 1,226.9 trillion won at the end of August, up 8.2 trillion won from the previous month.
Lending to large companies expanded by 2.9 trillion won, and loans to small businesses increased by 5.2 trillion won last month. (1 South Korean Won is equal to 0.00075 US dollars)