The household loan balance of the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) increased by 2.5 trillion won this month. The balance of credit loans, which had shown a declining trend for some time, also rose by more than 1 trillion won. This increase is interpreted as credit loans being executed for bottom fishing amid the turmoil in the global investment market triggered by U.S. President Donald Trump's tariff war.
According to the financial sector on the 20th, as of the 17th, the household loan balance of the five major banks was recorded at 740.509 trillion won. This figure represents an increase of 2.4998 trillion won compared to the balance at the end of March (738.5511 trillion won), surpassing the increase in March (1.7992 trillion won) already. Household mortgage loans increased by 1.5018 trillion won this month. The increase in housing transaction volume in Seoul during the period of the land transaction permission zone's removal in February appears to be reflected in this mortgage increase. Typically, it takes about 1 to 2 months for fluctuations in real estate transactions to be reflected in mortgage execution.
The balance of credit loans increased by 1.0595 trillion won. Since December of last year, credit loans have shown a declining trend for four consecutive months. This is the steepest rate of increase since July 2021 (1.8636 trillion won), when both the 'Hanchang' and debt investment phenomena were in full swing. However, the balance of credit loans may decrease slightly after each payday (25th) due to loan repayments.
The recent surge in credit loans appears to be a result of a brief trend in debt investment. Earlier this month, President Trump announced and then withdrew a plan for large-scale reciprocal tariffs, while the U.S.-China tariff conflict intensified, causing global stock markets and the virtual asset market to falter. It is interpreted that individual investors believe this is a timing for bottom fishing and have mobilized loans to invest.
According to the Korea Exchange, from the 1st to the 17th, individual investors made a net purchase of approximately 5.5718 trillion won. During the same period, foreigners recorded a net sale of 10.3429 trillion won.