Seoul: The rise in household loans extended by five leading banks here has slowed sharply, industry data showed Sunday, following a series of tighter regulations aimed at curbing home price hikes and household debts. Outstanding household loans at five major lenders -- KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup -- stood at 763.4 trillion won (US$545.7 billion) as of Thursday, up 467.5 billion won from the end of August, according to the data.

According to Yonhap News Agency, the average daily growth came to 26 billion won over the Sept. 1-18 period, slumping some 80 percent from the daily average increase of 126.6 billion last month. A bank official noted, "The pace of household loan debt increase seems to be slowing due to factors such as the June 27 property market measure," adding it should be monitored whether the trend will continue through the end of the month.

Since late June, authorities have imposed a 600 million-won cap on mortgage loans for property purchases in the capital region and suspended home-backed loans for multi-homeowners in an effort to rein in soaring housing prices. Housing transactions have surged in recent months, particularly in Seoul and surrounding metropolitan areas, as banks eased restrictions on household lending at the beginning of the year and the Seoul city government temporarily lifted its land transaction permit requirements.