Household debt hits new high in fourth quarter, but growth slows

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A man walks past advertisements in Seoul promoting Standard Chartered Korea’s mortgage products. (Yonhap)

South Korean household debt hit a new high in the fourth quarter of last year, but rose at a slower pace from the previous three months amid tighter lending rules, officials revealed on Tuesday. central bank data.

Household credit stood at 1.862 trillion won ($1.56 trillion) at the end of December, up 1%, or 19.1 trillion won, from three months earlier, the data showed. of the Bank of Korea (BOK).

The gain slowed from a 1.9% quarter-on-quarter increase in the third quarter.

Household credit refers to purchases of credit and loans to households from financial institutions.

The slowdown in quarterly growth came as financial authorities tightened lending rules as part of efforts to contain rising household debt, which is often cited as a major drag on the country’s economic growth. .

Loans to households from banks and other financial institutions amounted to 1.755.8 trillion won in the fourth quarter, up 0.8 percent, or 13.4 trillion won, from three months earlier.

The growth was also lower than a 34.7 trillion won increase recorded in the third quarter, the data showed.

Mortgages soared 13.4 trillion won in the quarter to 982.4 trillion won in the third quarter.

Purchases on credit jumped 5.7 trillion won to 106.3 trillion won at the end of December, the data showed. (Yonhap)

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