Key facts
- Outstanding household loans at the five banks reached 783.6 trillion won at end-October, up 2.77 trillion won from September.
- Mortgage loans rose 1.7 trillion won to 623.99 trillion won, a seventh straight monthly increase.
- Credit loans advanced 669 billion won to 108.89 trillion won, after a 1.34 trillion won fall the previous month.
- The Bank of Korea held its benchmark rate at 3 percent at its October meeting after July and August increases.
Household loans at South Korea's five major banks rose in October from a month earlier, the banks' own data showed, reversing a decline in September. Outstanding household loans at KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank and NH Nonghyup Bank stood at 783.6 trillion won ($584 billion) at the end of October, up 2.77 trillion won from the previous month.
The September fall was the first in six months. The October increase was mainly attributed to a rise in both mortgage and credit loans. Mortgage loans rose for a seventh consecutive month, gaining 1.7 trillion won to 623.99 trillion won at the end of October. Credit loans advanced 669 billion won to 108.89 trillion won, following a 1.34 trillion won fall the previous month.
The Bank of Korea kept its benchmark interest rate unchanged at 3 percent at its October meeting, after two consecutive increases, to give it time to assess economic conditions amid prolonged tensions in the Middle East and robust exports. The central bank raised the rate at its July and August meetings, citing preemptive action to curb mounting inflationary pressure and ensure macroeconomic stability.