S. Korean banks' household loans rebound in Feb.

SEOUL, April 13 (Yonhap) -- South Korean banks' lending to households rebounded
in February as home-backed lending rose by the largest amount in more than two
years on the back of record-low borrowing costs, the central bank said Monday.

Outstanding household loans by commercial banks and non-banking financial
institutions amounted to 515.5 trillion won (US$386.4 billion) as of the end of
February, up 2.8 trillion won from a month earlier, according to the Bank of
Korea (BOK).
In January, household lending declined 3.3 trillion won, marking the steepest
monthly fall in more than five years.
"In February, eased regulations on the real estate market also prompted more
people to resort to home-backed loans," said Lee Sang-yong, an official at the
BOK.
Mortgage loans extended by local banks amounted to 244.8 trillion won in
February, up 3.32 trillion won from a month earlier as record-low borrowing costs
spurred home purchases.
The February figures marked the largest monthly gain since November 2006 when
such lending increased by 4.23 trillion won, it added.
On Thursday, the BOK froze its key interest rate at a record low of 2 percent for
the second straight month, saying that a sharp fall in economic activity has
moderated.
Between October and February, the bank had made six consecutive rate cuts
totaling 3.25 percentage points.
sooyeon@yna.co.kr
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