Loans for mid-term and self-employed individuals increased to record high as of September
▲ On the afternoon of September 28, a placard with information on loans is attached to the outer wall of the mutual financial sector in downtown Seoul. (Newsis)
Despite the various regulatory measures of the financial authorities, the growth of bank household loans is not slowing down. It is expected that the high growth rate will continue for the time being.
Corporate loans also continued to increase despite special factors at the end of the quarter. This is because support from the authorities is continuing due to the spread of the novel coronavirus infection (COVID-19), and recently, facility investment funds have also been steady.
According to the Bank of Korea on the 13th, bank household loans, including policy mortgage loans, recorded 1052.7 trillion won in September, an increase of 6.5 trillion won from the previous month. This is the second highest on record in terms of increase in September. The largest increase ever recorded was a 9.6 trillion won increase recorded last year.
(Bank of Korea)
By sector, mortgage loans increased by 5.7 trillion won. This is also the third highest on record as of September. This is because housing sales and jeonse transactions continued, and demand for related funds was steady. In fact, as of August, the nationwide apartment sales and jeonse transaction volume reached 55,000 and 39,000, respectively. The scale of the increase in Jeonse loans to Judamdae reached 2.5 trillion won.
Other loans, including general credit loans and negative bankbook loans, only increased by 800 billion won. The strengthening of household loan management in the financial sector had an impact. However, it is difficult to see that the increase was actually small as the effect of the return of funds following the subscription for IPO shares at the end of August was significant.
Park Seong-jin, Deputy General Manager of the Bank of Korea Market Team, said, “It decreased compared to the increase in the second half of last year and the first half of this year, but it is still maintaining a high level of growth. Although there are loan restrictions, it seems that the demand for loans is still high.”
He also predicted that “it is expected to decrease due to the government’s loan regulations, such as the full-scale implementation of DSR regulations for each borrower from July, and measures such as the suspension of loan products by some banks and an increase in the base rate, but it will maintain a high increase for the time being.”
During the same period, corporate loans increased by 7.7 trillion won to 1049 trillion won. This is the largest increase in history as of September since the preparation of the related breaking news in June 2009.
Large enterprises increased by 300 billion won, and small and medium-sized enterprises increased by 7.4 trillion won. Among small and medium-sized enterprises (SMEs), the number of sole proprietors also increased by 3.5 trillion won. Medium-term and individual business loans also reached their all-time highs as of September.
There was a section where funds were temporarily repaid to manage the financial ratio at the end of the quarter, but the increase in demand for working capital and facility funds and continued financial support from the authorities had an impact.
.
