South Korea’s Financial Services Commission published preliminary figures showing household loans across all financial sectors increased by KRW 6.4 trillion in October 2026, reversing September’s KRW 2.2 trillion decline. Faster mortgage growth and renewed expansion in other borrowing drove the increase. Lending remained within the previously announced annual target, but financial firms were asked to avoid concentrating lending over particular periods in ways that could trigger a broad credit crunch.
Mortgage loans increased by KRW 4.0 trillion as disbursements of previously approved group loans sustained growth despite a recent decline in housing transactions. Other loans rose by KRW 2.4 trillion after falling KRW 5.4 trillion in September, with credit loans returning to growth. By sector, bank lending increased by KRW 5.0 trillion, up from KRW 0.6 trillion in September. Nonbank lending rose by KRW 1.4 trillion after a KRW 2.7 trillion decline.
Financial authorities plan to continue inspections of illegal housing market practices to curb speculative demand while maintaining adequate credit for nonspeculative homebuyers and renters. Particular emphasis remains on credit availability for young adults and people outside the Seoul metropolitan area.