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Banks' household loans swing to upturn in June

KEB Hana Bank's head office in central Seoul. (Yonhap)
KEB Hana Bank's head office in central Seoul. (Yonhap)
South Korean banks' household loans swung to an upturn in June following the previous month's one-off decline, central bank data showed Thursday.

Outstanding bank loans to local households came to 1,030.4 trillion won ($896 billion) as of end-June, up 6.3 trillion won from a month earlier, according to the data from the Bank of Korea (BOK).

It marks a turnaround from the 1.6 trillion-won on-month decline in May, which was attributed to repayments of loans by customers after the initial public offering of battery maker SK IE Technology Co.

A large number of bank customers took out loans from local banks to apply for SK IE Technology's IPO subscription.

The central bank said June's sold growth resulted mainly from a surge in mortgage loans.

Banks' mortgage loans expanded by 5 trillion won on-month to 752.2 trillion won in June, compared with a 4 trillion-won increase the previous month.

Unsecured and other non-mortgage loans grew by 1.3 trillion won, a turnaround from a 5.5 trillion-won tumble.

In the January-June period, local banks' household loans soared by 41.6 trillion won, the largest first-half increase since data tracking began in 2004, according to the BOK. (Yonhap)