Credit loans from South Korea’s five major banks surged in the first half of the year, exceeding the target by 3.2 times

Glonghui, July 23 — According to data submitted by the Financial Supervisory Service and cited by South Korean People Power Party lawmaker Lee Yang-su on the 22nd, in the first half of this year, the outstanding balance of other loans—mainly credit loans—at South Korea’s five major commercial banks (KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and NH Nonghyup Bank) saw a sharp increase. The total amount of new loans reached 3.4658 trillion won (approximately 15.8 billion yuan), exceeding the annual targets set by all banks by about 2.4 trillion won, which is roughly 3.2 times the target. Analysis suggests that driven by the “borrowing to invest in stocks” trend, other loans—mainly credit loans—have risen rapidly. To control the total household loan amount, the five major banks have further tightened the issuance of housing mortgage loans since July. Industry analysts believe that, due to the rapid growth of credit loans and the difficulty of quota management, banks have shifted to strengthen controls over mortgage lending, which involves larger sums and is relatively easier to manage. Several banks have already begun tightening mortgage loan policies.