Regulatory Alerts2024-09-11 | 83064Household Loans, August 2024
The Financial Services Commission reported that household loans rose by KRW 9.8 trillion in August 2024, driven by strong mortgage activity in the Seoul metropolitan area and pre-implementation borrowing ahead of the second phase stressed debt service ratio rule. While banks saw a steep increase of KRW 9.3 trillion, the nonbanking sector also reversed its previous decline with modest growth across specialized credit finance and savings banks. Authorities anticipate a slowdown in debt growth following the new regulatory measures but will continue to closely monitor trends and implement additional measures if housing market overheating or excessive debt accumulation occurs.
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