South Korea household loans down in January to $405M

Household loans in South Korea went down to US$405 million in January from US$2.49 billion December due to sluggish housing market.

Lenders' household loans declined for the first time last month after posting consistent growth since February of 2011, according to data from the Bank of Korea.

The South Korean government and financial watchdog have been trying to put a lid on mounting household debts as heavy indebtedness is feared to squeeze private consumption, one of two growth engines of the domestic economy.

Although household loans usually dip in January from the previous month, the decline last month was "unusual" and was bigger than in previous years, the BOK said.

The latest drop in household loans was due to a slump in housing sales, which reduced demand for home-backed loans, the central bank said. A one-time factor, such as a tax break phaseout at the end of 2011, also diminished demand for new credits in January.

For the source of this story, click here.

Also Read

Tighter policies drag South Korean household loan growth in September

SME loans in Taiwan rose in August

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit