S.Korea’s household credit falls for first time in a decade

© Reuters. FILE PHOTO: Homes are seen in Seoul August 1, 2012. REUTERS/Lee Jae-Gained

SEOUL (Reuters) – South Korea’s household credit shrank within the fourth quarter of 2022, its first quarterly decline in close to a decade, central bank knowledge confirmed on Tuesday.

The country’s total household credit fell 0.2%, or 4.1 trillion won ($3.16 billion), within the fourth quarter from the outdated quarter, to 1,867.0 trillion won by the discontinuance of December, fixed with the Bank of Korea.

The quarterly decline used to be the major for the reason that January-March quarter of 2013 and the biggest share drop for the reason that predominant quarter of 2009.

On an annual basis, the total credit elevated 0.2%, marking its slowest growth since knowledge assortment started within the fourth quarter of 2002.

South Korea’s central bank has raised pastime rates by a total of 300 basis parts since August 2021, along side a 25-basis-point rate hike closing month, which is broadly expected to hold marked the discontinuance of the recent tightening cycle.

($1 = 1,297.5000 won)