Unsecured loans 2trillion won surge, debt-funded investing spreads again
Unsecured loans rose by about 2trillion won in a month. The outstanding balance was tallied at its highest level in 2 years and a half, and loan growth was observed even as top-end interest rates approached 6%.
Financial institutions’ outstanding unsecured loan balances increased by about 2trillion won in one month. This monthly increase was reported to be the largest since the COVID19 pandemic. Total outstanding unsecured loans were tallied at their highest level in 2 years and a half.
Previously, growth in lending was held back by limits on total household lending. Unsecured loans then began to rise again as a major rally in the KOSPI coincided with increased buying by individual investors. Loan growth continued even as top-end interest rates approached 6%.
An expansion in credit provision by securities firms and banks has been observed. The main loans were reportedly classified as unsecured loans for stock investment. The increase in lending has heightened volatility in related statistics.
Financial-sector statistics include outstanding loan balances and monthly changes for banks and non-bank financial institutions. Aggregate data can be found in household loan statistics published quarterly or monthly. The relevant figures are reflected in official financial-sector statistics.
According to reports, increased leverage among individual investors was cited as a factor behind the rise in credit loans amid a record-setting stock market rally. This phenomenon is classified as a household financial burden and an item for risk monitoring by the financial sector. Specific figures can be found in detailed financial-sector statistics.
Sources: 매일경제 경제
Bullstory synthesized this report from the linked sources. AI may have assisted the writing process. Check the original reports for factual confirmation.