South Korea's Financial Supervisory Service published preliminary November 2025 household lending figures showing outstanding household loans across all financial sectors increased by KRW 4.1 trillion, a slower rise than October’s KRW 4.9 trillion. Mortgage loans increased by KRW 2.6 trillion, while other loan types rose KRW 1.6 trillion and credit loans grew KRW 0.9 trillion, unchanged from the prior month. Bank household loans rose KRW 1.9 trillion, slowing from KRW 3.5 trillion, with deceleration across banks’ own mortgage products, policy-based loans, and other loan types. Nonbank household loans increased KRW 2.3 trillion, accelerating from KRW 1.4 trillion, driven by faster growth at mutual finance businesses, insurance companies, and specialized credit finance businesses, while the decline at savings banks moderated. The release linked slower mortgage growth to strengthened household debt management measures and encouraged financial companies to reflect domestic and external uncertainties when setting 2026 monthly and quarterly household loan targets. The Financial Services Commission and Korea Housing Finance Corporation plan to adjust how home values are determined for jeonse loans on properties not covered by public real estate price databases by allowing, if requested by the renter, a home appraisal dated within six months to be used instead of applying a flat 140 percent of the government-declared value. For the first half of 2026, the stressed debt service ratio framework will continue to apply the second-stage level for mortgages secured on residential properties located outside the Seoul metropolitan and/or speculation regulated areas, including an additional 0.75 percent stress rate until June 30, 2026, set at 50 percent of the base stress rate of 1.5 percent and varying by mortgage interest structure.

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