On the 19th local time, a preliminary verification data released by the Bank of Korea showed that as of the end of the second quarter of this year, South Korea's household debt balance was 2019.8 trillion won, exceeding 2000 trillion won for the first time in history. At the same time, there was an increase of 25.9 trillion won over the previous quarter, the highest since the third quarter of 2021. Currently, South Korea's residential sector debt has continued to grow for the ninth consecutive quarter. So-called “household debt” includes residential loans from banks, insurance companies, loan companies, and financial institutions, as well as credit card purchases. Breaking down this debt bill, out of the total balance of residents' loans of 1891.3 trillion won, housing mortgage loans were 1,190.8 trillion won, an increase of 12.2 trillion won over the previous quarter; other loans were 700.5 trillion won, an increase of 12.8 trillion won. The Bank of Korea said that the increase in other loans was mainly due to demand for stock investment. As far as the composition is concerned, “other loans” refer to household loans other than housing mortgages. The main source is an unsecured credit loan or overdraft account, which is the main funding channel used by Korean retail investors to borrow money and enter the market. This is also the first time since the second quarter of 2021 that other loans have increased more than the amount of home mortgages. With the current steady recovery of the Korean stock market, Korean retail investors have begun a new round of layout. On August 20, the Korea Composite Stock Price Index rose by more than 5% in the intraday period, once hitting a recent high of 6904 points.
Zhitongcaijing · 1d ago
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On the 19th local time, a preliminary verification data released by the Bank of Korea showed that as of the end of the second quarter of this year, South Korea's household debt balance was 2019.8 trillion won, exceeding 2000 trillion won for the first time in history. At the same time, there was an increase of 25.9 trillion won over the previous quarter, the highest since the third quarter of 2021. Currently, South Korea's residential sector debt has continued to grow for the ninth consecutive quarter. So-called “household debt” includes residential loans from banks, insurance companies, loan companies, and financial institutions, as well as credit card purchases. Breaking down this debt bill, out of the total balance of residents' loans of 1891.3 trillion won, housing mortgage loans were 1,190.8 trillion won, an increase of 12.2 trillion won over the previous quarter; other loans were 700.5 trillion won, an increase of 12.8 trillion won. The Bank of Korea said that the increase in other loans was mainly due to demand for stock investment. As far as the composition is concerned, “other loans” refer to household loans other than housing mortgages. The main source is an unsecured credit loan or overdraft account, which is the main funding channel used by Korean retail investors to borrow money and enter the market. This is also the first time since the second quarter of 2021 that other loans have increased more than the amount of home mortgages. With the current steady recovery of the Korean stock market, Korean retail investors have begun a new round of layout. On August 20, the Korea Composite Stock Price Index rose by more than 5% in the intraday period, once hitting a recent high of 6904 points.
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