SEOUL, July 12 (Xinhua) -- Bank loans to households in South Korea surged last month ahead of the implementation of tightened regulation on mortgage financing, central bank data showed Wednesday.
Debts owed by households to lenders, including banks, savings banks and insurers, grew 7.8 trillion won (6.8 billion U.S. dollars) in June, according to the Bank of Korea (BOK). For the first six months of this year, the debts increased by 40.3 trillion won.
Among the total, home-backed loans extended by banks to households jumped 4.3 trillion won last month, posting the biggest monthly expansion in seven months.
The big increase came as the new government under President Moon Jae-in announced its comprehensive measures to control speculative investment into real estate.
As the measures were implemented in early July, households rushed to purchase home with borrowed money last month.
The number of housing transactions in capital Seoul and its suburban metropolitan area reached 47,000 and 15,000 each in June, marking this year's monthly highest figure.
The BOK was widely forecast to raise its record-low interest rate on worry about the record-breaking debt increase among households.
The central bank lowered its policy rate from 3.25 percent in July 2012 to an all-time low of 1.25 percent in June last year.
The U.S. Federal Reserve raised its benchmark rate to a range of 1.00-1.25 percent in June, putting more pressure on the BOK over hike rates.
