Xinhua
12 Mar 2025

SEOUL, March 12 (Xinhua) -- South Korean banks' household lending rebounded in three months owing to higher demand for mortgage loan, central bank data showed Wednesday.

Debt owed by households to deposit-taking banks totaled 1,143.7 trillion won (788.1 billion U.S. dollars) at the end of February, up 3.3 trillion won (2.3 billion dollars) from a month earlier, according to the Bank of Korea (BOK).

It turned around after sliding for the past two months on the back of stronger demand for mortgage loan.

Banks' mortgage loan gained 3.5 trillion won (2.4 billion dollars) last month, but other loans to households, including credit loan, credit line and commercial real estate-backed loan, shrank 200 billion won (137.8 million dollars).

The housing market remained sluggish. The number of apartment transactions nationwide declined from 38,000 in October to 27,000 in December last year and 26,000 in January this year.

The BOK lowered its benchmark interest rate by a quarter percentage point to 2.75 percent in February after cutting it by the same percentage point in October and November last year.

Banks' corporate loan stood at 1,326.4 trillion won (914.0 billion dollars) at the end of February, up 3.5 trillion won (2.4 billion dollars) from a month earlier.

Lending to big companies added 400 billion won (275.6 million dollars), while loan to small firms climbed 3.1 trillion won (2.1 billion dollars) last month.