SEOUL, June 14 (Xinhua) -- South Korea's bank loans to households hit the fastest growth in six months owing to strong demand for mortgage loans, central bank data showed Wednesday.
Debts owed by households to commercial banks amounted to 724.8 trillion won (644.4 billion U.S. dollars) as of end-May, up 6.3 trillion won from a month earlier, according to the Bank of Korea (BOK).
It was the biggest monthly gain since November last year. Households rushed to purchase home with borrowed money amid the record-low interest rate.
The BOK cut its benchmark interest rate from 3.25 percent in July 2012 to an all-time low of 1.25 percent in June last year.
Outstanding home-backed loans expanded 3.8 trillion won from a month earlier to 545.5 trillion won as of end-May. Credit loans rose 2.5 trillion won to 178.5 trillion won.
Corporate loans by banks reached 765.2 trillion won as of end-May, up 2 trillion won from a month ago.
Loans to large businesses reduced 0.7 trillion won to 155.7 trillion won, but those to small companies increased 2.8 trillion won to 609.4 trillion won. (1 U.S. dollar equals to 1124.67 South Korean Won)
