Rise in household loans gathers pace in Aug. despite real estate curb

Household loans extended by Korean banks added more than 4 trillion won ($2.87 billion) in August, data showed Sunday, despite aggressive restrictions implemented earlier in the year to curb rising household debt and housing prices. Household loans extended by banks increased 4.2 trillion won this month as of Thursday, sharply up from the 2.2 trillion won on-month growth in July, which marked the smallest increase since March. In an effort to curb rising household debt and housing prices, authorities in late June imposed a 600 million-won cap on mortgage loans for property purchases in the capital region, while suspending home-backed loans for multi-homeowners. The growth picked up in August due to a rise in unsecured and other types of household loans. While the government believes the latest restrictions have eased the market's overheating to some extent, it is mulling additional regulations for the real estate market, including tightening the loan-to-value (LTV) ratio, according to market observers. The LTV ratio is a key regulatory tool used to curb household loans, as it limits the mWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times