Household loans extended by South Korean financial institutions grew by the largest amount in four months in October amid an increase in housing transactions, the central bank said Tuesday.

Outstanding household lending by local banks and non-bank institutions totaled a record 676.1 trillion won ($643.2 billion) as of end-October, up 4 trillion won from the previous month, according to the Bank of Korea.

The October gain marked the largest monthly increase since a 6.55 trillion won on-month advance tallied in June.

The BOK said that housing transactions increased, accelerating the growth of home-backed lending in October.

Depository institutions’ mortgage loans grew by 2.3 trillion won on-month to 411.4 trillion won and credit lending gained 1.8 trillion won to 264.7 trillion won, it added.

Local banks’ household loans rose 2.5 trillion won on-month to 475.2 trillion won, the central bank said. (Yonhap News)