S.K.’s household loans from insurers climb to $77m in November

On the other hand, loans made from nonbanks fell to $2.2b.

South Korean insurance companies saw an increase of KRW100b (about $77m) in household loans in November, whilst nonbanks observed a decline of KRW2.8t in household loans, falling at a faster rate compared to the previous month (down KRW0.5t), according to South Korea’s Financial Services Commission (FSC).

This decline was led by mutual finance unions (down KRW2.8t), savings banks (down KRW0.1t), and specialized credit finance businesses (down KRW0.01t).

During the month, the outstanding balance of household loans across all financial sectors increased by KRW2.6t, indicating a notable decrease compared to the previous month's growth of KRW6.2t.

The slowdown in the growth of household loans in November was attributed to a deceleration in mortgage lending in the banking sector.

Authorities plan to closely monitor household loan trends and ensure the effective implementation of household loan management measures, including the introduction of a stressed debt service ratio (DSR) limit and other relevant measures.

The year-on-year changes in household loans show a fluctuating pattern: +2.6% in May 2023, +3.2% in June, +5.2% in July, +6.1% in August, +2.4% in September, +6.2% in October, and +2.6% in November.

ALSO READ: S.K.’s FSC calls for regulation on online asset users' protection

Breaking down by type, home-backed mortgage loans registered a rise of KRW5.6t, a slight increase compared to the preceding month's growth of KRW5.2t.

In the banking sector, mortgage loans increased by KRW5.7t, while the nonbanking sector witnessed a decrease of KRW0.1t in mortgage loans.

Other types of loans decreased by KRW3.0t, mainly driven by declines in non-housing mortgage loans and savings-secured loans in the mutual finance sector.

Examining by sector, household loans exhibited a slower growth rate in the banking sector and a more significant decline in the nonbanking sector compared to the previous month.

Banks experienced a KRW5.4t increase in household loans in November, indicating a deceleration from the June-September period (up KRW6.0t to up KRW7.0t).

This was led by policy mortgage loans and group lending for non-speculative homebuyers. Other types of loans in banks fell by KRW0.3t, down from an increase of KRW1.0t a month earlier.

Also Read

Philippine life insurance sector slated for 5.4% CAGR by 2028

Property insurance industry to exceed $152b by 2028

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit