The Bank of Korea announced on the 25th that in the real estate boom last year, corporate loans increased by 81 trillion won and household loans by 89 trillion won, which is 2.2 of GDP and the biggest increase in real estate financial risk.
The Bank of Korea's Financial Stability Report shows that the ratio of private credit (the balance of household and corporate debt) to the nominal gross domestic product (GDP) last year increased from 215.5% to 18.4%, a record high.
The report revealed that the real estate finance exposure (risk exposure) was 2,279 trillion won, an increase of 10.3% (212 trillion won) from 2019 (2,67 trillion won), and a sharp rise in risk at 7% increase in 2018 and 2019.
According to the report, household credit increased 7.9% last year to 177.2 trillion KRW, and corporate credit increased 10.1% to 255.3 trillion KRW, and the ratio of household debt to income was 175.5%, 13.2 percentage points higher than in 2019, and the debt burden increased. Confirmed.
This increase in household loans from 89.2 trillion won to 15.9 trillion won in real estate mortgage loans, compared to 21 trillion won in policy mortgage loans, accounted for 40% with an increase of 35 trillion won in cheonsei guarantees, supporting the real estate boom.
The report revealed that non-bank household loans, which had declined due to the expansion of bank household loans, turned to an increase in the second half of last year, implying a link between rising housing prices and increasing debt.
In the report, 56.0% of the increase in corporate loans (+81.4 trillion won) in the financial sector is real estate loans (45 trillion won), and the increase in real estate loans from non-banks (+24.9 trillion won) is the increase in banks (+20 trillion won). More than 100 billion won).
Real estate financial exposure is the sum of loans and real estate-related financial investment products input by households and real estate-related companies. Last year, the amount of 2,280 trillion won was 118.4% of nominal gross domestic product (GDP), up 10.7 percentage points.
According to the report, bankruptcy-risk corporate loans accounted for more than 10% of total corporate loans, and among self-employed people, “high-risk households” were measured at 7.6 trillion won.
The report shows that last year's self-employed loans surged to 10.0% in the first quarter, 15.4% in the second quarter, 15.9% in the third quarter, and 17.3% in the fourth quarter, while sales declined 5.5%, 3.6%, 1.9%, and 4.6% in sales. The decline was viewed as an increase in debt.