Household credit rises for 8th quarter in Q1 amid tighter lending regulations

Korea's household credit rose for the eight consecutive quarter in the first three months of this year, but the pace of growth slowed slightly amid tighter lending regulations, central bank data showed Tuesday. Outstanding household credit stood at 1,993.1 trillion won ($1.33 trillion) as of end-March, up 14 trillion won from three months earlier, according to the preliminary data from the Bank of Korea (BOK). It marked the eighth consecutive quarterly increase since the second quarter of 2024, while the pace of on-quarter growth slowed for the third straight quarter. Household credit refers to credit purchases and loans extended to households by financial institutions. "Given the authorities' ongoing focus on managing household debt, household credit is not expected to increase significantly," BOK official Lee Hye-young told a press briefing. "However, as housing transactions have been rising recently, this trend warrants close attention." She noted that home sales, particularly in Seoul, had increased in recent months ahead of the expiration of temporary exemptions from higher real esta

Original source: Korea Times