Home-backed loans, extended by banks to households, expanded 4.3 trillion won (3.6 billion U.S. dollars) in January, according to the Bank of Korea (BOK). It was the highest January increase since the BOK began compiling the data in 2004.
The rapid gain came as the BOK kept its benchmark interest rate at a record low of 1.25 percent since October last year. The policy rate was lowered from 1.75 percent to 1.50 percent last July.
The government unveiled a new set of measures in December to curb mortgage loan for high-priced housings, but the policy had yet to take effect.
Banks' credit loan to households reduced 600 billion won (506.6 million U.S. dollars) in January thanks to the bonus payment during the Lunar New Year holiday that fell in late January this year.
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