Household lending in the financial sector has increased by nearly 7 trillion won this month alone. The demand for housing mortgage loans has surged significantly due to the continuous increase in apartment prices in the Gangnam area and the "Mayongseong" (Mapo, Yongsan, Seongdong) region.
The key point is the second half of the year. As financial authorities implement stringent regulations limiting housing mortgage loan caps in the metropolitan area to 600 million won, the demand for high-end properties is expected to slow down, but the possibility of a balloon effect in outer areas of Seoul, such as "Nodogang" (Nowon, Dobong, Gangbuk), cannot be excluded. The financial authorities plan to closely monitor market conditions.
According to the financial sector and financial authorities on the 29th, the total balance of household loans in the entire financial sector increased by about 5.8 trillion won this month alone as of the 26th. Considering the expected increase until the remaining business days, the total increase in household loans this month is anticipated to be in the late 6 trillion won range.
This is the largest scale in 10 months since August of last year when the "younggle" (borrowing to the limit) frenzy occurred, with a total of 9.7 trillion won. Household lending in the financial sector has continued to rise since surging by 4.2 trillion won in February, and also increased in April (5.3 trillion won) and May (6 trillion won).
As of the 26th, the household loan balance of the five major commercial banks, including KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup, was 752.9948 trillion won, an increase of 4.9136 trillion won compared to the end of the previous month (748.812 trillion won). The daily average increase in household loans was 189 billion won, the highest in 10 months since August of last year (310.5 billion won).
The balance of mortgage loans (including Jeonse loans) increased by 3.9489 trillion won to 597.6105 trillion won during the same period. Credit loans rose from 103.3145 trillion won to 104.3233 trillion won, an increase of 1.08 trillion won.
The financial authorities plan to respond to trends in household loans and the real estate market by analyzing the effects of the stringent lending regulations announced on the 27th. A financial authorities official noted, "The mortgage loans that will be executed next month have already been approved a month or two ago, so it will be difficult to see a significant drop in household loan figures for July right away," adding, "Starting in August, the regulatory effects will begin to be fully reflected."
However, there are analyses suggesting that a balloon effect may occur, with housing demand shifting from high-priced apartments to relatively lower-priced dwellings. The buying force may shift to outer areas of Seoul, such as "Nodogang" or "Geumgwanggu" (Geumcheon, Gwanak, Guro), where it is possible to borrow within the 600 million won mortgage loan limit.
The financial authorities also stated that they would implement additional supplementary measures if necessary. A senior official from the financial authorities said, "Even if polarization or balloon effects were to emerge, we would take additional supplementary actions," adding, "We will hold weekly meetings to check the status of household loans while assessing whether additional measures are needed."
Additionally, they are closely watching the situation regarding banks that have temporarily suspended non-face-to-face mortgage and credit loan applications. Commercial banks, internet banks, and local banks have halted non-face-to-face loan applications to reflect the lending regulations in their internal IT systems. The financial authorities are expected to monitor the progress of the IT integration by today and conduct on-site inspections starting on the 30th.