Borrowing to invest in stocks is turning into a pipe dream? Korean media reveals: Top 5 commercial banks have already used up 85% of their annual household loan quota

Odaily Planet Daily News According to data disclosed by the Korean financial industry on July 12, as of the end of June, the total household loan balance (excluding policy loans) of the five major commercial banks - KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and NH Nonghyup Bank - stood at 647.58 trillion KRW, an increase of 3.70 trillion KRW compared to the end of last year. At the beginning of the year, South Korean financial regulatory authorities set annual household loan growth targets for various financial institutions, capping the total growth rate at 1.5%, lower than the actual growth rate of 1.7% last year, aimed at curbing the excessively rapid expansion of household debt.

Calculated based on this target, the total annual new household loan limit for the five major banks is approximately 4.34 trillion KRW. Broken down by bank: KB Kookmin Bank 909.2 billion KRW, Shinhan Bank 850 billion KRW, Hana Bank 880.5 billion KRW, Woori Bank 826.6 billion KRW, and NH Nonghyup Bank 870 billion KRW. However, the actual increase of 3.70 trillion KRW in the first half alone already accounts for 85.3% of the annual limit. The remaining quota for the year is only about 639.5 billion KRW, which, distributed across the six months of the second half, leaves extremely limited room for new loans. (Wall Street Insight)