The household loans of the five major commercial banks in Korea have surged by over 2 trillion won again this month. It is analyzed that the demand for loans is rapidly increasing due to the combined effect of the Bank of Korea's base interest rate cut and the financial authorities' pressure to lower loan interest rates. The authorities and banks are on high alert, strengthening related monitoring.

According to the banking sector on the 27th, the household loans of the five major commercial banks, including Kookmin, Shinhan, Hana, Woori, and NongHyup, increased by 2,301.5 billion won this month. This is the largest increase in five months since September of last year (5,602.9 billion won).

It has been found that housing mortgage loans from the five major banks alone have increased by more than 2 trillion won this month. The increase in jeonse (lump-sum deposit rent) loans through the five major banks is also known to be significant. Credit loans, which had decreased for two consecutive months since December of last year, have also turned to an increasing trend.

The resurgence of housing mortgage loan demand since the beginning of this year is the reason for the renewed surge in household loans this month. It is analyzed that the pent-up demand from last year has started to stir this year, leading to a renewed surge in loan demand at bank counters.

A vice president of a commercial bank predicted, "Since the financial authorities issued a loan restraint order to curb household loans from the second half of last year, banks have been managing themselves by raising loan interest rates, but the pent-up demand is reviving in the new year. With expectations of further interest rate cuts and continued pressure from the authorities to lower loan interest rates, loan demand is expected to increase further."

Banks are strengthening daily and weekly monitoring to manage household loans. This is based on the judgment that loan demand may surge in the short term if loan interest rates fall further.