S.Korea's household bank loans post largest March growth

Bank loans among South Korean households posted the largest March growth on demand for mortgage loans in the spring house-moving season, central bank data showed Monday.

Bank household loans stood at 649 trillion won (564.7 billion U.S. dollars) as of end-March, up 4.9 trillion won from a month earlier, according to the Bank of Korea (BOK).

It was a larger growth than any March figures since the data began to be compiled in 2008.

The fast increase came amid the record-low interest rate. The BOK kept its benchmark interest rate at an all-time low of 1.5 percent after cutting it to the current level in June last year.

Demand for mortgage loans was strong in March when housing transactions tend to grow during the spring house-moving season. Apartment transactions in capital Seoul amounted to 7,100 in March, up from 5,000 in February.

Home-backed loans extended by banks reached 486.9 trillion won, up 4.4 trillion won compared with the previous month. Credit loans rose 0.5 trillion won to 161.4 trillion won.

Bank corporate loans increased 0.7 trillion won from a month earlier to 734 trillion won at the end of March. It was sharply lower than rises of 2.4 trillion won in February and 6.9 trillion won in January each.

Bank loans to large corporations reduced 2.5 trillion won, while those to small companies increased 3.2 trillion won last month. Enditem