SEOUL (Reuters) – South Korea’s bank lending to households in August surged by the biggest monthly amount on record, led by mortgage borrowing and credit loans for stock investments, central bank data showed on Wednesday.
Household loans owed to banks increased by a net 11.7 trillion won ($9.83 billion) during August, the biggest monthly jump since data compilation began in 2004 and much sharper than the 7.6 trillion won rise recorded in July.
Mortgage lending grew by a net 6.1 trillion won last month, the biggest rise since a net 6.3 trillion won in March and compared with a net 4.0 trillion won gain in July, the Bank of Korea data showed.
Other modes of lending, which include credit loans, in August increased a net 5.7 trillion won, the fastest growth on record and much higher than the net 3.7 trillion won recorded in the prior month, on higher demand for equity investments and housing funds.
“Home sales in the metropolitan area continued to rise since June, leading to mortgage lending … and demands for stock investments and living expenses also added to the pace of rise,” a Bank of Korea official said.
“It is difficult to predict whether the rising trend in credit loans will persist, but considering the Chuseok holiday and its (holiday) bonuses, the rate of increase in September may slow from August,” the official added.
($1 = 1,190.6900 won)
(Reporting by Joori Roh; Editing by Amy Caren Daniel)
