South Korea's household debts extended by depository corporations grew at a slower pace in July compared with the previous month due to weak demand for home- backed loans amid faltering property market, data by the central bank showed Tuesday.
Debts owed by households to depository corporations, including banks and non-bank depository institutions, reached 647.6 trillion won ($573.25 billion) as of the end of July, up 1.7 trillion won from a month before, according to the Bank of Korea ( BOK).
The July growth was slower than an expansion of 3.1 trillion won in June as households reduced mortgage loans amid the flagging real estate market. The country's housing transactions slowed to an average of 401,000 for the first seven months of this year, down 30.2 percent from the same period last year.
Household loans extended by banks advanced 0.7 trillion won on- month to 458.6 trillion won in July. Housing-related loans, including mortgage loans, grew 0.3 trillion won in July, lower than a 1.1 trillion won expansion in June, but credit loan growth increased from 0.1 trillion won in June to 0.4 trillion won in July.
Household debts extended by non-bank institutions, including mutual savings banks, credit unions, mutual credit institutions, community credit cooperatives, rose 1 trillion won to 189.0 trillion won in July. Mortgage loans grew 0.2 trillion won in July, with credit loans increasing 0.8 trillion won.