SEOUL, Aug. 19 (Yonhap) -- South Korea's household credit rose at the fastest pace in nearly five years to an all-time high in the second quarter on rising demand for housing and investment-related loans, central bank data showed Wednesday.

Outstanding household credit stood at a record 2,019.8 trillion won (US$1.43 trillion) as of end-June, up 25.9 trillion won from three months earlier, according to the preliminary data from the Bank of Korea (BOK).

The on-quarter increase marked the largest since the third quarter of 2021, when the balance shot up by 34.8 trillion won.

Household credit refers to credit purchases and loans extended to households by financial institutions.

"The sharp increase came with a rise in housing transactions in the quarter before the exemption of capital gains tax expired," said Kim Sung-jun, head of the monetary and financial statistics team at the BOK. "At the same time, non-mortgage loans increased as well in an apparent move to invest in the booming stock market."

In detail, household loans stood at 1,891.3 trillion won at the end of June, up 24.9 trillion won from three months earlier, marking the largest on-quarter increase since the third quarter of 2021.

Of the total, mortgage lending rose 12.2 trillion won to 1,190.8 trillion won, while non-mortgage loans increased 12.8 trillion won to 700.5 trillion won.

Credit purchases climbed 900 billion won on-quarter to 128.5 trillion won, slowing from a 1.4 trillion-won rise in the first quarter, the latest findings showed.

brk@yna.co.kr

(END)

  • BTS' V reveals hearing loss, Jungkook performs through shin injury on world tour
  • N. Korea silent on Lee's proposal for dialogue to officially end Korean War
  • (2nd LD) Lee proposes dialogue with N. Korea to officially end Korean War, halt Pyongyang's nuclear program
  • Ha Young says 'sincerely sorry' over great-grandfather's pro-Japanese past

  • Incheon airport ranks world's No. 1 in int'l passenger traffic in first half

  • BTS' V reveals hearing loss, Jungkook performs through shin injury on world tour

  • N. Korea silent on Lee's proposal for dialogue to officially end Korean War
  • Trump signs memo permitting foreign shipbuilders to build up to 2 U.S. ships in their shipyards
  • (LEAD) Lee reiterates support for four-year, two-term presidential system

  • (2nd LD) Lee proposes dialogue with N. Korea to officially end Korean War, halt Pyongyang's nuclear program

  • Death penalty sought for woman accused of killing 2 men with laced drinks

  • (2nd LD) Lee reaffirms push to retake wartime operational control of troops during his term
  • (LEAD) Trump says N. Korea's Kim has responded to his dialogue overture
  • (LEAD) Seoul in close consultation with U.S. over combined military exercises: security adviser
  • (LEAD) USFK commander visits defense ministry after Trump's order to reduce joint exercise with S. Korea