SEOUL, Aug. 24 (Yonhap) — South Korea’s household credit grew at a faster pace in the second quarter as non-banking financial firms increased loans, central bank data showed Tuesday.
Household credit reached a record high of 1,805.9 trillion won (US$1.54 trillion) as of June, up 41.2 trillion won from three months earlier, according to the data from the Bank of Korea (BOK).
Household credit refers to credit purchases and loans for households that have been extended by financial institutions, including commercial lenders and mutual savings banks.
The second-quarter tally compared with a 37.6 trillion-won on-quarter rise in the first quarter.
Household lending extended by banks and other financial institutions reached 1,705.3 trillion won in the second quarter, up 38.6 trillion won from three months earlier.
Mortgage loans rose 17.3 trillion won on-quarter to 948.3 trillion won in the second quarter.
Credit purchases stood at 100.6 trillion won as of end-June, up 2.7 trillion won from three months earlier, the BOK said.
Korea’s household debt has been repeatedly cited as the main drag on Asia’s fourth-largest economy, as households’ high level of debt is feared to curb domestic demand and crimp economic growth.