Personal Loan Growth 100 Times Higher Than Mortgages at Top 5 Banks

A sign for mortgage loan products was posted at a bank in Seoul on May 31.

According to the financial sector, the increase in personal loans at major commercial banks in May exceeded the increase in mortgage loans by more than 100 times.

As of May 28, household loans at the five major banks (KB Kookmin, Shinhan, Hana, Woori, NH Nonghyup) stood at 770.2728 trillion won, an increase of 2.9768 trillion won (0.39%) compared to the end of last month. This is the largest increase since August of last year. It appears to be due to increased demand for funds from borrowers taking out personal loans to invest in stocks amid the KOSPI's continuous record highs.

Excessive personal lending can increase the instability of the financial system.