S. Korea's household lending grows slower in April

SEOUL, June 16 (Yonhap) -- Household loans extended by South Korean financial
firms grew at a slower pace in April than in March amid home-backed lending
controls and a sluggish property market, the central bank said Wednesday.
Total household lending by local banks and nonbank financial institutions
amounted to an outstanding 557.7 trillion won (US$460.6 billion) as of the end of
April, up 3.5 trillion won from the previous month, according to the Bank of
Korea (BOK). The April figures slightly slowed from a 3.7 trillion won expansion
in March.
"The growth of home loans in April was not brisk, compared with previous years'
monthly averages as continued home-backed loan controls brought about lackluster
transactions in property markets," a BOK official said.
Low borrowing costs and expectations for rising house prices have prompted more
people to take out mortgage loans, leading the financial watchdog to put
regulatory loan controls in place last year.
Local banks' household loans, including mortgage lending, expanded by 1.8
trillion won to 412 trillion won, the BOK said.
Bank mortgage loans, which account for a majority of household borrowing, grew
1.8 trillion won on-month to 269 trillion in April.
sooyeon@yna.co.kr
(END)

Delete & Prev | Delete & Next