Debts, owed by households to deposit-taking banks, amounted to 1,060.8 trillion won (806.6 billion U.S. dollars) at the end of June, up 300 billion won from a month earlier, according to the Bank of Korea (BOK).
The household debt continued to grow for three straight months as banks alleviated loan standard, especially for mortgage loans.
Mortgage loan advanced by 1.4 trillion won last month, but credit loan kept sliding for the seventh straight month since December last year.
Demand for bank loans among households was widely forecast to weaken down the road amid the expected interest rate hikes later this year.
The BOK has raised its key rate five times by 25 basis points since August last year. Expectations arose for the BOK to lift the rate by 50 basis points at this month's rate-setting meeting. (1 U.S. dollar equals 1,313.08 won)
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