SEOUL, Aug. 14 (Yonhap) -- South Korea's chief financial regulator said Friday that household loan growth slowed in July under tightened regulations, but it needs to tightly control consumer lending in the face of higher home prices and a rise in transactions.

In a meeting on household loan trends, Lee Eog-weon, chairman of the Financial Services Commission (FSC), said while curbing loans for speculation, there is also a need to funnel money into home construction and to those with actual demand for homes.

Last month, household loans by all financial institutions rose 6.2 trillion won (US$4.38 billion), slowing from the previous month's 8.3 trillion-won advance.

Home-backed loan growth also slowed to 3.5 trillion won last month from 4.5 trillion won over the cited period, data from the FSC showed.

The FSC chief said a comprehensive financial package unveiled earlier this week is designed to accelerate housing supply and provide financial support for young people and those with actual home demand.

On Thursday, the regulator said it would boost policy loans for construction projects to some 50 trillion won from the earlier 26 trillion won, and provide more loans for young people and newlyweds who want to buy a home, to stabilize the housing market.

"Financial institutions need to tightly regulate speculative demand, while providing support for young people and those with actual demand," Lee said.

sam@yna.co.kr

(END)

  • BTS' V reveals hearing loss, Jungkook performs through shin injury on world tour
  • From 'BTS Boulevard' to U.S. governor's praise: BTS sweeps N. America on 'Arirang' tour
  • TWICE's Jeongyeon leaves JYP to pursue acting career
  • Gemini, BTS collaboration on display at Las Vegas Sphere

  • Pyeongtaek city fails to reach U.S. military via hotline over reported white phosphorus leak: official

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

  • From 'BTS Boulevard' to U.S. governor's praise: BTS sweeps N. America on 'Arirang' tour
  • TWICE's Jeongyeon leaves JYP to pursue acting career
  • Pyeongtaek city fails to reach U.S. military via hotline over reported white phosphorus leak: official

  • (LEAD) Pyeongtaek city fails to reach U.S. military via hotline over reported white phosphorus leak: official

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

  • (2nd LD) Gov't aims to supply over 230,000 additional homes in Seoul metropolitan area to tame housing prices
  • N. Korea again skips missile launch report
  • Bill Gates in S. Korea to discuss cooperation in next-generation nuclear reactors
  • Daewoo E&C selected as preferred bidder for Papua New Guinea LNG project