Svmuu News: According to data released by the South Korean financial industry on July 12, as of the end of June, the combined household loan balance (excluding policy loans) of the five major commercial banks—KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and NH Nonghyup Bank—totaled 647.58 trillion won, an increase of 3.70 trillion won from the end of last year. At the beginning of the year, South Korea’s financial regulatory authorities issued household loan volume control targets to financial institutions, setting the annual growth cap at 1.5%—lower than last year’s actual growth rate of 1.7%—with the aim of curbing the rapid expansion of household debt.
Based on this target, the combined annual cap on new household loans for the five major banks is approximately 4.34 trillion won. By bank: KB Kookmin Bank: 909.2 billion won; Shinhan Bank: 850.0 billion won; Hana Bank: 880.5 billion won; Woori Bank: 826.6 billion won; NH Nonghyup Bank: 870.0 billion won. However, the actual increase of 3.70 trillion won in the first half alone already accounted for 85.3% of the annual cap. The remaining annual quota is only about 639.5 billion won, which, when spread over the six months of the second half, leaves extremely limited room for growth. (Wall Street Journal)