Household loan growth fell in January to lowest in 3 years: BOK


The Bank of Korea reported today that outstanding
loans to households increased last month by the smallest amount in three years… as the
government struggles to get a grip on private debt. The BOK said household loans rose in January
by 100 billion won, or about 87 million dollars, just a fraction of the 3-point-4 trillion
added a month earlier. Analysts say one reason for the sharp decline
is the seasonal factor — it’s the low season for buying and selling homes. But also contributing were higher interest
rates for mortgage loans — they rose by about a tenth of a percent from the month before
to 3-point-1-3 percent. In January, mortgage loans to households rose
by 800-billion won, but that was offset by a decrease in unsecured personal loans of
700-billion.

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