SEOUL, Aug. 22 (Xinhua) -- South Korea's household credit, including mortgage loans and credit purchases, hit a new record high as demand for home-backed loans jumped ahead of the end of temporary tax benefits, central bank data showed Thursday.
Household credit outstanding was 980 trillion won (873 billion U.S. dollars) as of the end of June, up 16.9 trillion won from three months earlier, according to the Bank of Korea (BOK). The figure was the highest in the country's history.
Household credit includes loans from banks, non-bank depository institutions as well as purchases on credit.
Household loans increased 17.5 trillion won during the April- June period as demand for mortgage loans jumped ahead of the end of temporary cuts for home acquisition tax. Credit Purchases reduced 0.6 trillion won due to a rise in purchases with check cards.
Loans extended by banks increased 8.3 trillion won in the second quarter after falling 4.9 trillion won in the prior quarter. Debts owed by households to non-bank deposit takers, including savings banks, credit unions and community credit cooperatives, increased 3.1 trillion won in the quarter after increasing 0.1 trillion won in the previous quarter.