Xinhua
09 Apr 2025, 09:45 GMT+10
SEOUL, April 9 (Xinhua) -- South Korean banks' household lending has risen for the second straight month due to strong demand for mortgage loan, central bank data showed Wednesday.
Debt owed by households to deposit-taking banks totaled 1,145.0 trillion won (770.8 billion U.S. dollars) at the end of March, up 1.4 trillion won (942.5 million dollars) from a month earlier, according to the Bank of Korea (BOK).
The growth came after swelling 3.2 trillion won (2.2 billion dollars) in February on the back of the still solid demand for mortgage loan.
Banks' mortgage loan gained 2.2 trillion won (1.5 billion dollars) last month, but other loans to households, including credit loan, credit line and commercial real estate-backed loan, shrank 900 billion won (605.9 million dollars).
The country's housing market showed signs of recovery. The number of apartment transactions nationwide reached 38,000 in February after bottoming at 26,000 in January.
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 1,324.3 trillion won (891.5 billion dollars) at the end of March, down 2.1 trillion won (1.4 billion dollars) from a month earlier.
Lending to big companies fell 700 billion won (471.3 million dollars), while loan to small firms decreased 1.4 trillion won (942.5 million dollars) last month.
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