In February, the total household loans in South Korea increased by 2.9 trillion won, marking a continuation of growth for the second consecutive month, according to the Financial Services Commission. The increase in household loans was more significant compared to January, where the increase was only 1.4 trillion won. The data reveals that while bank loans decreased by 300 billion won, the second financial sectors reported an increase of 3.3 trillion won, influenced by various loans such as policy-based lending programs.

The rise in mortgage loans also gained momentum, with a total increase of 4.2 trillion won, surpassing the 3 trillion won recorded in January. Conversely, other loans, including credit loans, saw a decrease of 1.2 trillion won but showed a reduction in the rate of decline compared to January. This mixed trend in household lending indicates a shift towards more favorable borrowing conditions in the second financial sector, indicating a likely persistence of group loans, particularly from mutual financial institutions.

Looking forward, there are expectations for an increase in demand for mortgage loans in March, especially with the upcoming expiration of the transfer income tax exemptions for multiple homeowners on May 9. The Financial Services Commission noted that this may lead to an uptick in housing transactions, as more supply of housing is anticipated in the market. Analysts suggest that the dynamics of household lending will continue evolving as conditions in the real estate market shift ahead of the tax deadline.