S. Korean banks push household lending rate in August

Demand for fixed-rate mortgage and credit loans during the summer vacation pushed the rate of household lending among South Korea's bank.

According to South Korea's central bank, household loans extended by banks reached 459.3 trillion won or  US$407.76 billion as of the end of August, up 1.5 trillion won from a month earlier.

The August increase was higher than a 0.7 trillion won expansion tallied in the previous month.

Fixed-rate home-backed loans that were actively promoted by the lenders. On the other hand, the demand for credit loans became stronger during the August summer vacation period, according to the Bank of Korea.

Home-backed loans expanded by 0.7 trillion won on-month in July, up from a 0.4 trillion won growth tallied in the previous month. Credit loans to households rose 0.8 trillion won last month, up from a 0.3 trillion won gain in July.

Corporate loans by local lenders came in at 590.2 trillion won as of end-August, up 3.7 trillion won from a month before, said the BOK. The on-month expansion was lower than a growth of 4.5 trillion won in July.

Banks' lending to large companies grew 3 trillion won on-month in August, down from a 4.0 trillion won expansion in July. Loans for small- and mid-sized enterprises increased 0.7 trillion won last month, up from a 0.5 trillion won rise in the previous month.

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