S.Korea's household borrowing falls by biggest since 2004

The South Korean households' borrowing fell by the biggest monthly amount in at least 19 years in January, with demand curtailed by rising interest rates, according to central bank data released on Thursday.

In January, the country's total household borrowing from banks shrank by 4.6 trillion won $3.64 billion, compared with a 0.3 trillion won increase in December, to 1,053. The Bank of Korea said that there would be 4 trillion trillion by the end of the month.

It was the biggest monthly decrease since the central bank started the data series in January 2004.

The decline was caused by high interest rates, tightened loan regulations on debt-to- service ratio and seasonal factors linked to bonus payments for the Lunar New Year's holiday, the BOK said in a statement.

In January, the BOK raised its policy interest rate by 25 basis points to 3.50 per cent, the highest since late 2008, and suggested that its 1 -- 1 2 year rate-hike campaign had ended.