S. Korea Credit Card Loans Hit Record High Amid Economic Slowdown
Outstanding loans from 9 major firms reach 42.99 trillion won as cash-strapped borrowers turn to card firms
Auf einen Blick
- Outstanding credit card loans in South Korea rose for three consecutive months to a record 42.99 trillion won ($29.2 billion) in March, as cash-strapped borrowers turned to card firms after banks raised interest rates and tightened lending.
- The monthly growth slowed to 0.21 percent from 0.7 percent the previous month, reflecting the impact of government efforts to curb surging household debts.
KI-generierte Zusammenfassung
Warum es wichtig ist
South Korea has been grappling with rising household debt, which authorities have sought to manage through stricter lending regulations. Banks have raised loan interest rates and tightened borrowing criteria, pushing cash-strapped consumers toward credit card firms.
SEOUL, April 21 (Yonhap) -- Outstanding credit card loans have risen for three consecutive months to reach an all-time high in March amid the economic slowdown and high inflation, data showed Tuesday. Outstanding loans extended by nine major credit card firms amounted to 42.99 trillion won (US$29.2 billion) as of end-March, the largest amount ever, according to the data from the Credit Finance Association. The figure had been on a constant increase for three consecutive months, reaching 42.3 trillion won in December, 42.6 trillion won in January and 42.9 trillion won in February, the findings showed. But the credit card loan growth slowed to 0.21 percent on a monthly basis from a 0.7 percent gain the previous month. The growth came as cash-strapped people turned to card firms to borrow money as banks have raised loan interest rates and tightened lending recently in line with the government's call for strictly managing loans to curb surging household debts.
Offene Fragen
- What specific measures is the government implementing to curb household debts?
- How do these credit card loan levels compare to other countries in the region?
