The segment introduces the topic of the decrease in bank loan balances in South Korea.

• The bank loan balance has decreased for the first time since March of the previous year.

Explanation of the specific amounts by which the bank loan balances have decreased and the period over which it occurred.

• Last month's bank loan balance was 198.6 trillion won, a decrease of 1.6 trillion won.
• This is the first decrease in a year since March of the previous year.

The report highlights the impact of housing loans and policy funding on the decrease of bank loan balances.

• The reduction in the rise of housing loans has played a significant role in the decrease of bank loan balances.
• Policy loans from the Housing Urban Fund used their resources, which did not leave the banking sector.

The segment discusses various factors that contributed to the reduction in housing loans.

• A decrease in the demand for rental funds occurred after the end of the moving season and the start of the new school year.

The segment explains the process of policy loan allocation and its impact on banking.

• Housing Urban Fund policy loans are supplied using their resources from February to May.
• Once exhausted, banks provide a secondary coverage method for funding.

The report analyzes the trends in bank and overall financial sector loan balances.

• Considering the monthly level of Housing Urban Fund policy loans, the bank loan balance is estimated to be similar to that of February.
• The overall financial sector, including banks, has seen an increased decrease in loan balances.

The report continues to discuss the trend of decreasing loan balances in the financial sector.

• Following a reduction in February, the total financial sector decreased its loan balance by nearly 5 trillion won last month.

The segment provides the Bank of Korea and financial authorities' outlook on the housing market and policy loans.

• The Bank of Korea and financial authorities expect the Housing Urban Fund's resource contribution to bank loans to remain stable for a while.
• However, there is caution over a potential rise in home prices due to changes in domestic and foreign monetary policies.

The report concludes with a summary of expectations regarding the loan market and housing prices.

• There is anticipation that the increase in loans may resume if expectations for rising house prices go up due to monetary policy shifts.