The rise in mortgage loans expanded last month among household loans across the financial sector. Bank household loans also rose more than the previous month.

Household loans across the financial sector rose 8.3 trillion won in June, the Financial Services Commission said on July 9. The increase was 1 trillion won smaller than the previous month’s 9.3 trillion won but larger than the 6.5 trillion won rise a year earlier.

By loan type, mortgage loans rose 4.5 trillion won. That was 500 billion won more than the previous month’s 4.0 trillion won. Bank mortgage loans rose to 4.3 trillion won in June from 3.2 trillion won in May, while mortgage loan growth at the second-tier financial sector fell to 300 billion won from 800 billion won over the same period.

Other loans rose 3.7 trillion won, slowing from 5.3 trillion won the previous month. The commission explained this reflected credit loan growth easing to 2.6 trillion won in June from 3.6 trillion won in May.

By sector, bank household loans rose 7.6 trillion won. That was 700 billion won more than the previous month’s 6.9 trillion won increase.

Banks’ own mortgage loans rose to 2.9 trillion won in June from 2.1 trillion won in May. Policy loans rose to 1.4 trillion won from 1.0 trillion won. Other loans slowed to 3.3 trillion won from 3.7 trillion won.

Household loans at the second-tier financial sector rose 700 billion won. That was sharply smaller than the previous month’s 2.4 trillion won rise. Mutual finance groups slowed to 100 billion won from 800 billion won, while insurers edged up to 1.0 trillion won from 900 billion won.

Specialised credit finance companies swung to a 200 billion won decline from a 600 billion won rise, while savings banks turned to a 300 billion won fall from a 200 billion won increase.

Jin-chang Shin (신진창), secretary general at the Financial Services Commission, said, "Recently, as volatility continues to widen in other loans at the second-tier financial sector such as insurance contract loans and card loans, the entire financial sector, including banks as well as insurers, specialised credit finance companies and mutual finance, should not let down its guard and should further strengthen efforts to manage household loans."