SEOUL, Aug. 19 (Xinhua) -- South Korea's household credit hit a new record high in the second quarter due to solid demand for mortgage loan and higher stock investment with borrowed money, central bank data showed Tuesday.
Household credit, which refers to debts owed by households to banks and other lenders in addition to the purchase on credit, stood at 1,952.8 trillion won (1.41 trillion U.S. dollars) at the end of June, up 24.6 trillion won from three months earlier, according to the Bank of Korea (BOK).
It marked the largest amount since relevant data began to be compiled in 2002, maintaining an upward momentum for the fifth straight quarter.
The record household credit was affected by stock investment with borrowed money and robust demand for home-backed loans amid policy rate cuts.
The BOK cut its benchmark interest rate by 25 basis points in February and May each to 2.50 percent after slashing it by the same basis points in October and November last year.
Excluding the purchase on credit, household debt mounted 23.1 trillion won from three months earlier to 1,832.6 trillion won at the end of June.
Mortgage loans to households expanded 14.9 trillion won in the April-June quarter, while other loans to households, such as credit loans, swelled 8.2 trillion won.
The purchase on credit grew 1.4 trillion won in the second quarter after reducing 1.6 trillion won in the previous quarter. (1 won equals 0.00072 U.S. dollars) ■