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Credit loans by South Korean banks to individuals are set to increase for the third consecutive month in August due to soaring housing costs and other factors.
The country's five major lenders, namely KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup, posted outstanding unsecured loans to individuals totaling 121.49 trillion won as of Thursday, up 1.29 trillion won from July.
July's increase was mainly due to surging home prices that resulted in a race to buy apartments before more price increases.
The government has been employing measures to keep apartment prices in check but had not been successful.
But the recent bullish stock market also prompted retail investors to take out bank loans to invest, causing a surge in credit loans.
The pandemic also forced the jobless to borrow from banks.
