South Korean non-bank financial firms saw the amount of extended household loans near the 300 trillion won (US$ 259 billion) mark last month, data showed Thursday, raising concerns the sharp growth may further add to the country’s heavy household debt.
The size of non-bank financial firms’ outstanding household loans reached 289.3 trillion won as of the end of November, compared with 452 trillion won of lenders, according to the data by the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS).
The tally includes loans extended by financial firms excluding banks, such as credit card firms, insurance companies and savings banks.
The size of household loans extended by non-bank financial firms has been growing at a faster clip compared with that of banks. In the second half, the former increased by 13.5 trillion won, while the latter gained 9.6 trillion won, according to the data.
Meanwhile, the total size of non-bank financial firms’ assets reached 889.1 trillion won as of the end of June, raising views their total asset size is estimated to have surpassed 900 trillion won.