[Photo by Yonhap News]
Last month, the balance of card loans from domestic credit card companies surpassed 43 trillion won, marking the highest level ever recorded. This surge is attributed to a booming stock market driven by semiconductor stocks and increased demand due to stricter bank loan regulations.
According to the Korea Credit Finance Association on June 22, the balance of card loans from nine credit card companies—Samsung, Shinhan, Hyundai, KB Kookmin, Lotte, Woori, Hana, BC, and NH Nonghyup—reached 43.2534 trillion won at the end of May. This figure represents an increase of 2.704 billion won from the previous month, setting a new record.
The card loan balance has been steadily rising this year, reaching a previous high of 42.9942 trillion won at the end of March. However, following regulatory measures to limit the total amount of card loans, there was a slight decline in April, which has now rebounded.
Industry analysts suggest that the recent strength in the stock market, particularly in semiconductor stocks, has led to increased borrowing for investment purposes, known as debt investment. Additionally, the tightening of household loan regulations by financial authorities has resulted in a balloon effect, pushing more borrowers toward card loans.
Recently, financial authorities convened banks to address the significant rise in household loans, particularly focusing on credit loans and overdraft limits.
The balance of refinancing loans, taken out by borrowers unable to repay their card loans, increased by approximately 600 billion won to 1.6558 trillion won compared to the previous month. The balance of revolving credit also saw a slight rise from 67.064 trillion won to 67.998 trillion won. Meanwhile, the cash service balance rose by 3.072 billion won to 65.037 trillion won from the previous month (61.965 trillion won).
According to the Korea Credit Finance Association on June 22, the balance of card loans from nine credit card companies—Samsung, Shinhan, Hyundai, KB Kookmin, Lotte, Woori, Hana, BC, and NH Nonghyup—reached 43.2534 trillion won at the end of May. This figure represents an increase of 2.704 billion won from the previous month, setting a new record.
The card loan balance has been steadily rising this year, reaching a previous high of 42.9942 trillion won at the end of March. However, following regulatory measures to limit the total amount of card loans, there was a slight decline in April, which has now rebounded.
Industry analysts suggest that the recent strength in the stock market, particularly in semiconductor stocks, has led to increased borrowing for investment purposes, known as debt investment. Additionally, the tightening of household loan regulations by financial authorities has resulted in a balloon effect, pushing more borrowers toward card loans.
Recently, financial authorities convened banks to address the significant rise in household loans, particularly focusing on credit loans and overdraft limits.
The balance of refinancing loans, taken out by borrowers unable to repay their card loans, increased by approximately 600 billion won to 1.6558 trillion won compared to the previous month. The balance of revolving credit also saw a slight rise from 67.064 trillion won to 67.998 trillion won. Meanwhile, the cash service balance rose by 3.072 billion won to 65.037 trillion won from the previous month (61.965 trillion won).
* This article has been translated by AI.
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