Amid rising expectations for asset prices, such as dwellings and stocks, due to declining interest rates and the launch of the new government, the fervor for "loaning to the soul" (a term that means borrowing up to one's limits) shows no signs of cooling down. Recently, there has been a surge in applications for both face-to-face and non-face-to-face loans, and it is widely anticipated that the fervor for borrowing will continue for a significant time in the second half of the year, as there is a several-month lag before the loans are executed.
According to financial authorities on the 15th, the household loan balance of the five major banks (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup) as of the 12th was 750 trillion 792 billion won, an increase of 1 trillion 998 billion won compared to the end of May (748 trillion 812 billion won). The increase in household loans from these banks has steadily decreased since hitting a record high of 9 trillion 625 billion won in August of last year due to strengthened household loan management by financial authorities after September and even declined by 467.2 billion won in January of this year.
However, after rebounding in February (3 trillion 93 billion won), increases in March (1 trillion 799.2 billion won), April (4 trillion 533.7 billion won), and May (4 trillion 996.4 billion won) continued to grow. Notably, the average daily increase in household loans this month is 166.5 billion won, surpassing last month's record of 161.2 billion won, which marked the largest monthly increase in eight months since September of last year (5 trillion 629 billion won).
The balance of mortgage loans (including leasehold loans) stood at 595 trillion 141.5 billion won, an increase of 1 trillion 479.9 billion won in just 12 days compared to the end of May (593 trillion 661.6 billion won). Credit loans also rose by 600.2 billion won, from 103 trillion 314.5 billion won to 103 trillion 914.7 billion won. The average daily increase of 50 billion won is nearly double that of May (26.5 billion won).
Recent increases in household loans are closely related to investments in real estate and other assets, as confirmed by other statistics. The total amount of newly issued individual mortgage loans for purchasing dwellings by the five major banks as of the 12th of this month was recorded at 3 trillion 114 billion won.
The banking sector views the scale of new mortgage loans for purchasing dwellings as the most directly reflected indicator of the so-called "loaning to the soul" trend. This averages around 251 billion won daily, approximately 20 billion won more than May (231.8 billion won), and is close to levels seen just before the peak of loaning to the soul last year in May (243.6 billion won) or June (277.7 billion won).
The banking sector also notes that the proportion of policy loans in newly issued mortgage loans is rapidly decreasing. This month, the proportion of policy loans among newly issued mortgage loans in the five major banks stands at around 28%, down from 56% at the end of last year to nearly half in just over five months.
A significant portion of personal credit loans is estimated to be flowing into not only dwellings but also stocks and cryptocurrencies. As of the 12th, the balance of personal credit loans among the five major banks (103 trillion 914.7 billion won) is the highest since November of last year (104 trillion 893 billion won). Notably, the balance of general credit loans (excluding overdraft accounts) is at its highest level in over a year and two months since March of last year (65 trillion 412.4 billion won), totaling 65 trillion 401.9 billion won.
According to the Korea Financial Investment Association, the investor deposit, a key indicator of funds surrounding the stock market, is currently at 62 trillion 9,444 billion 570 million won as of the 12th, marking its largest scale in about three years and two months since April 27, 2022 (64 trillion 856 billion 180 million won).