S.Korea’s household debt growth hits 10-month high in August

Xinhua News Agency | Sep 11, 2019 at 6:50 AM

SEOUL, Sept. 11 (Xinhua) -- Household debt growth in South Korea hit a 10-month high last month on lower policy rate, central bank data showed Wednesday.

Debts owed by households to banks grew by 7.4 trillion won (6.2 billion U.S. dollars) in August, marking the fastest increase in 10 months since October last year, according to the Bank of Korea (BOK).

It was faster than a 5.9 trillion won expansion (5 billion U.S. dollars) tallied a year earlier and a 5.8 trillion won (4.9 billion U.S. dollars) gain in the previous month.

The faster growth was attributed to the BOK's benchmark interest rate cut in July from 1.75 percent to 1.50 percent.

Expectations ran high for the BOK's further rate cut by the end of this year to help bolster the lackluster economy, stemming from the global trade dispute and the ongoing trade feud between South Korea and Japan.

Mortgage loan to households, extended by banks, increased 4.7 trillion won (3.9 billion U.S. dollars) last month as the apartment transactions in capital Seoul gained ground in the month.

Credit loan advanced 2.7 trillion won (2.3 billion U.S. dollars) during the summer vacation season.