Bank loans extended to households increased by nearly ten trillion won last month as demand rose for home purchases, rent and investment in IPOs.

According to Bank of Korea data released Wednesday, outstanding bank loans to local households surpassed one-thousand-40 trillion won as of the end of July, up nine-point-seven trillion won from a month earlier. 

It marks the largest increase for July since record keeping began in 2004.

Housing-related lending shot up across the board including mortgage loans, which jumped more than six trillion won in one month.

A Bank of Korea official said that subscription for initial public offerings was another key source of loan appetite last month, including the online-only Kakao Bank which made its stock market debut.