South Korea’s household debt grows in March
South Korea’s household loans increased last month based on data shown by financial authorities on Wednesday. Credit loans for mortgages and stock investments outside Seoul surged after the government launched new property regulations.
Bank loans extended to local households increased by 9.6 trillion won ($7.87 billion) last March. It was recorded as the biggest monthly jump since 2004.
Fast growth in property prices were observed in South Korea. The Central Bank’s interest rates were kept low amid virus outbreak and global trade war.
The bank had released an Emergency 50 basis points cut in Mid-March aimed at bolstering economic growth and demand. There had also been cut rates in July and October last year had also been reported.
“Most funds for investors’ stock purchase and sales are likely to have been financed by credit loans … the demand for equity investment funds has increased noticeably in March,” a BOK official said in a statement.