{"id":2206201,"date":"2024-08-20T08:00:56","date_gmt":"2024-08-19T23:00:56","guid":{"rendered":"https:\/\/koreapro.org\/?p=2206201"},"modified":"2024-08-19T13:51:59","modified_gmt":"2024-08-19T04:51:59","slug":"south-korean-banks-hike-mortgage-rates-amid-surging-household-debt","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2024\/08\/south-korean-banks-hike-mortgage-rates-amid-surging-household-debt\/","title":{"rendered":"South Korean banks hike mortgage rates amid surging household debt"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Major South Korean banks are reportedly <\/span><a href=\"https:\/\/www.yna.co.kr\/view\/AKR20240819044752002?section=economy\/all&amp;site=topnews01\"><span style=\"font-weight: 400;\">raising mortgage interest rates<\/span><\/a><span style=\"font-weight: 400;\"> to curb the surge in household loans, with increases ranging from 0.1 to 0.6 percentage points. KB Kookmin Bank, Shinhan Bank and Hana Bank will implement these hikes this week, marking the fifth such increase in a month and a half. These adjustments follow <\/span><a href=\"https:\/\/www.fss.or.kr\/fss\/bbs\/B0000188\/view.do?nttId=137597&amp;menuNo=200218&amp;pageIndex=1\"><span style=\"font-weight: 400;\">directives<\/span><\/a><span style=\"font-weight: 400;\"> from the Financial Supervisory Service to stabilize household debt levels.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Despite efforts to tighten lending, household loans at the five major banks rose by more than $3 billion (about 4.2 trillion won) in the first half of August, reaching a total balance of about $540 billion (about 720 trillion won).<\/span><\/p>\n<p><b>WHY IT MATTERS<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The banks\u2019 decision to raise mortgage interest rates is unlikely to significantly dampen demand for housing loans. Despite these moderate rate hikes, South Koreans will likely remain eager to borrow, driven by the expectation that property values will <\/span><a href=\"https:\/\/www.moef.go.kr\/nw\/nes\/detailNesDtaView.do?searchBbsId1=MOSFBBS_000000000028&amp;searchNttId1=MOSF_000000000069808&amp;menuNo=4010100\"><span style=\"font-weight: 400;\">continue to rise<\/span><\/a><span style=\"font-weight: 400;\">. South Koreans\u2019 persistent demand for housing loans is also likely fueled by the economic pressure to secure assets amid growing <\/span><a href=\"https:\/\/koreapro.org\/2024\/08\/south-koreas-stock-market-sinks-as-us-economic-woes-spark-global-sell-off\/\"><span style=\"font-weight: 400;\">household debt<\/span><\/a><span style=\"font-weight: 400;\">, particularly as the government moves to enforce stricter lending rules.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The government\u2019s inconsistent policies exacerbate this situation. A relatively low-interest rate environment and <\/span><a href=\"https:\/\/koreapro.org\/2024\/07\/tying-the-knot-or-not-south-koreas-trend-of-delayed-marriage-registration\/\"><span style=\"font-weight: 400;\">government incentives<\/span><\/a><span style=\"font-weight: 400;\"> along with speculative <\/span><a href=\"https:\/\/www.mk.co.kr\/en\/economy\/11094108\"><span style=\"font-weight: 400;\">gap investments<\/span><\/a><span style=\"font-weight: 400;\"> continue to fuel demand. Moreover, the government\u2019s <\/span><a href=\"https:\/\/koreapro.org\/2023\/07\/south-korean-banks-to-maintain-lenient-loan-policies-amid-relaxed-restrictions\/\"><span style=\"font-weight: 400;\">2023 decision<\/span><\/a><span style=\"font-weight: 400;\"> to adopt a lenient approach to extending loans to small businesses and households has unintentionally reinforced the resilience of housing loan demand, despite current efforts to tighten lending conditions.<\/span><\/p>\n<div class=\"content-tags\"><a href=\"https:\/\/koreapro.org\/tag\/business-economy\/\"><span class=\"tag\">Business &amp; Economy<\/span><\/a><a href=\"https:\/\/koreapro.org\/tag\/culture-society\/\"><span class=\"tag\">Culture &amp; Society<\/span><\/a><a href=\"https:\/\/koreapro.org\/tag\/domestic-politics\/\"><span class=\"tag\">Domestic Politics<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>Major South Korean banks are reportedly raising mortgage interest rates to curb the surge in household loans, with increases ranging from 0.1 to 0.6 percentage points. KB Kookmin Bank, Shinhan Bank and Hana Bank will implement these hikes this week, marking the fifth such increase in a month and a half. These adjustments follow directives [&hellip;]<\/p>\n","protected":false},"author":10407,"featured_media":2206202,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[24,25,27],"class_list":["post-2206201","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-briefings","tag-business-economy","tag-culture-society","tag-domestic-politics"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>South Korean banks hike mortgage rates amid surging household debt - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2024\/08\/south-korean-banks-hike-mortgage-rates-amid-surging-household-debt\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"South Korean banks hike mortgage rates amid surging household debt - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"Major South Korean banks are reportedly raising mortgage interest rates to curb the surge in household loans, with increases ranging from 0.1 to 0.6 percentage points. KB Kookmin Bank, Shinhan Bank and Hana Bank will implement these hikes this week, marking the fifth such increase in a month and a half. These adjustments follow directives [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/koreapro.org\/2024\/08\/south-korean-banks-hike-mortgage-rates-amid-surging-household-debt\/\" \/>\n<meta property=\"og:site_name\" content=\"KOREA PRO\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/nknewsorg\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-08-19T23:00:56+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-08-19T04:51:59+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/08\/eb-13.png\" \/>\n\t<meta property=\"og:image:width\" content=\"1870\" \/>\n\t<meta property=\"og:image:height\" content=\"1000\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"johnleenknews\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@southkoreapro\" \/>\n<meta name=\"twitter:site\" content=\"@southkoreapro\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"KOREA PRO\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/koreapro.org\/2024\/08\/south-korean-banks-hike-mortgage-rates-amid-surging-household-debt\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/koreapro.org\/2024\/08\/south-korean-banks-hike-mortgage-rates-amid-surging-household-debt\/\"},\"author\":{\"name\":\"johnleenknews\",\"@id\":\"https:\/\/koreapro.org\/#\/schema\/person\/b9766dba611638edc06a6e0b7078714d\"},\"headline\":\"South Korean banks hike mortgage rates amid surging household debt\",\"datePublished\":\"2024-08-19T23:00:56+00:00\",\"dateModified\":\"2024-08-19T04:51:59+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/koreapro.org\/2024\/08\/south-korean-banks-hike-mortgage-rates-amid-surging-household-debt\/\"},\"wordCount\":244,\"publisher\":{\"@id\":\"https:\/\/koreapro.org\/#organization\"},\"image\":{\"@id\":\"https:\/\/koreapro.org\/2024\/08\/south-korean-banks-hike-mortgage-rates-amid-surging-household-debt\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/08\/eb-13.png\",\"keywords\":[\"Business &amp; Economy\",\"Culture &amp; Society\",\"Domestic Politics\"],\"articleSection\":[\"Briefings\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/koreapro.org\/2024\/08\/south-korean-banks-hike-mortgage-rates-amid-surging-household-debt\/\",\"url\":\"https:\/\/koreapro.org\/2024\/08\/south-korean-banks-hike-mortgage-rates-amid-surging-household-debt\/\",\"name\":\"South Korean banks hike mortgage rates amid surging household debt - KOREA PRO\",\"isPartOf\":{\"@id\":\"https:\/\/koreapro.org\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/koreapro.org\/2024\/08\/south-korean-banks-hike-mortgage-rates-amid-surging-household-debt\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/koreapro.org\/2024\/08\/south-korean-banks-hike-mortgage-rates-amid-surging-household-debt\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/08\/eb-13.png\",\"datePublished\":\"2024-08-19T23:00:56+00:00\",\"dateModified\":\"2024-08-19T04:51:59+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/koreapro.org\/2024\/08\/south-korean-banks-hike-mortgage-rates-amid-surging-household-debt\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/koreapro.org\/2024\/08\/south-korean-banks-hike-mortgage-rates-amid-surging-household-debt\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/koreapro.org\/2024\/08\/south-korean-banks-hike-mortgage-rates-amid-surging-household-debt\/#primaryimage\",\"url\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/08\/eb-13.png\",\"contentUrl\":\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2024\/08\/eb-13.png\",\"width\":1870,\"height\":1000},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/koreapro.org\/2024\/08\/south-korean-banks-hike-mortgage-rates-amid-surging-household-debt\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/koreapro.org\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"South Korean banks hike mortgage rates amid surging household debt\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/koreapro.org\/#website\",\"url\":\"https:\/\/koreapro.org\/\",\"name\":\"KOREA PRO\",\"description\":\"Be smart about South Korea. 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