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S. Korea's household debt growth slows on gov't measures
Last Updated: 2018-08-09 16:54 | Xinhua
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South Korea's household debt growth slowed down last month on government measures to control speculative property investment with borrowed money, central bank data showed Thursday.

Debts owed by households to banks increased 4.8 trillion won (4.3 billion U.S. dollars) in July, the lowest expansion since March, according to data from the Bank of Korea (BOK).

The slowdown was attributed to the government measures to control speculative investment in the property market.

Households had rushed to buy new home with borrowed money as the policy rate stayed at a record-low level.

The BOK refrained from altering its benchmark rate since it raised the rate to the current 1.50 percent from an all-time low of 1.25 percent in November last year.

Banks tightened standard for loans to household amid the record-breaking household debts, which may face higher borrowing costs amid the expected rate increase by the BOK later this year.

Bank loans to the self-employed grew 2.5 trillion won (2.2 billion U.S. dollars) in July, posting an increase of over 2 trillion won (1.8 billion U.S. dollars) for the fifth consecutive month.

It raised worry that households borrowed money in the name of the self-employed enterprise amid the tightening of bank standard for household debts.

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