Major banks' household loans drop for 1st time in 10 months in January

Household loans extended by major Korean banks decreased for the first time in 10 months in January on sluggish real estate purchases, data showed Sunday.

Outstanding household credit extended by five major lenders — KB Kookmin, Shinhan, Hana, Woori and NH Nonghyup — stood at 732.37 trillion won ($502.2 billion) as of Jan. 24, down 1.77 trillion won from a month earlier, according to the data from the banks. Banks here were mostly closed from Jan. 25-30 due to the extended Lunar New Year holiday.

It marks the first time since March the outstanding household credit declined from a month earlier.

By type, home-backed loans went up 1.66 trillion won from a month earlier in January, but credit loans dropped by more than 3 trillion won over the cited period.

"Even without the holiday effect, the January household loan tally likely contracted from December, considering the recent weak performance of the housing market and a downward trend of credit loans," a local bank official said, adding year-end bonuses may also have contributed to the fall in household loans. (Yonhap)