Household loans in the mutual finance sector expanded sharply, driving up overall financial sector household loan growth last month. The government announced it will halt new group loans in the mutual finance sector to manage the rising household debt.
According to the Financial Services Commission and the Bank of Korea on the 11th, total household loans across the financial sector expanded by ₩2.9 trillion from the previous month. This represents more than double the increase recorded in January (₩1.4 trillion).
During this period, household loan growth in the mutual finance sector rose from ₩2.3 trillion to ₩3.1 trillion. Growth was particularly pronounced at NongHyup (₩1.4 trillion to ₩1.8 trillion) and Saemaul Geumgo (₩800 billion to ₩1 trillion). Meanwhile, household loan balances at banks declined by ₩300 billion from the previous month to ₩1,172.3 trillion.