Debts owed by households to deposit-taking banks came in at 1,049.9 trillion won (795.4 billion U.S. dollars) at the end of March, down 700 billion won (530.3 million dollars) from a month ago, according to the Bank of Korea (BOK).
The household debts plunged 4.7 trillion won (3.6 billion dollars) in January and 2.8 trillion won (2.1 billion dollars) in February each amid the higher borrowing costs.
The BOK had raised its benchmark interest rate since August 2021 by 3.0 percentage points to 3.50 percent.
Banks' mortgage loan rebounded last month on the back of the supply of the government-backed mortgage loans to prop up the faltering housing market.
Other loans to households, including credit loan, credit line and commercial real estate-backed loan, diminished 2.9 trillion won (2.2 billion dollars) in March, continuing to slide for the 16th successive month since December 2021.
Banks' corporate loan stood at 1,189.3 trillion won (901 billion dollars) at the end of March, up 5.9 trillion won (4.5 billion dollars) from a month earlier.
Lending to big companies added 100 billion won (75.8 million dollars), and loan to small firms expanded 5.8 trillion won (4.4 billion dollars) last month.
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