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http://dx.doi.org/10.17703/JCCT.2022.8.4.83

The Effect of Bank Loans on Housing Prices in Korea  

Han, Myung-Hoon (Division of Business Administration and Accounting, Kangwon National Univ)
Publication Information
The Journal of the Convergence on Culture Technology / v.8, no.4, 2022 , pp. 83-89 More about this Journal
Abstract
This study analyzed the effect of bank loans on housing prices, classified bank loans into bank total loans, household loans, and real estate mortgage loans, and analyzed housing prices by dividing them into national-level, regional-level, and Seoul-level housing prices. The main analysis results are as follows. First, it was found that the increase in total bank loans significantly increased housing prices across the national-level, regional-level and Seoul-level. Second, it was found that household loans had a positive effect on regional-level housing prices, but were not statistically significant. In addition, the effect of bank loans on regional-level housing prices was found to be relatively small compared to the effect on national-level housing prices. Third, it was found that there was a difference in the effect of bank loans on regional-level housing prices and Seoul-level housing prices. Fourth, inflation and bank total loans had a significant positive effect on regional-level housing prices with a lag in the first quarter, and short-term interest rates had a significant negative effect on Seoul-level housing prices with a lag in the first quarter. Overall, it was found that the effect of bank loans on housing prices had a positive effect about twice that of Seoul-level rather than regional-level.
Keywords
Bank Loans; Housing Prices; Household Loans; Real Estate Mortgage Loans;
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