According to the Bank of Korea (BOK) Tuesday, household credit totaled 1,060.3 trillion won (approximately US$952.5 billion) as of the end of September, up 2.1 percent, or 22 trillion won from 1,038.3 trillion won tallied three months earlier.
The gain in the third quarter represents a 64.2 percent hike from the 13.4 trillion won increase in the previous quarter.
The growth of household credit was led by home-backed loans, the BOK said.
Household lending by banks rose by 12.3 trillion won in the third quarter. Of the money, 11.9 trillion won was home-backed loans, it said.
Beginning Aug. 1, the government relaxed the regulations on loan-to-value (LTV) and debt-to-income (DTI) ratios to help home buyers borrow more. The BOK lowered the key interest rate twice this year in a move to bolster growth momentum.
reporter
Park Sae-jin
swatchsjp@ajunews.com
![[INTERVIEW] Survey company predicts greater spending on household appliances, digital content](https://image.ajunews.com/content/image/2021/02/02/20210202171158671429.jpg)