South Korea household borrowing at record high as mortgage demand jumps

SOUTH Korea’s household borrowing surged to a record high in June and by the biggest amount in 21 months, central bank data showed on Wednesday (Jul 12), as demand grew for mortgage loans.

Total household borrowing from banks grew by 5.9 trillion won (S$6.1 billion) to a record 1,062.3 trillion won at the end of the month, according to the Bank of Korea.

It was the third monthly rise after increases of 4.2 trillion won and 2.3 trillion won in May and April, respectively, and the biggest since September 2021.

“It is too early to say whether the pace is too fast,” a central bank official said during a media briefing, adding that the trend would have to be watched further to make an assessment.

Mortgage loans jumped by 7.0 trillion won compared with 4.2 trillion won the previous month. That was the biggest increase since February 2020. REUTERS