South Korea’s Financial Services Commission reports KRW 6.4 trillion household lending rebound in October

South Korea’s Financial Services Commission released provisional data showing household lending increased by KRW 6.4 trillion in October 2026, reversing September’s KRW 2.2 trillion contraction. Mortgage lending grew by KRW 4.0 trillion, up from KRW 3.2 trillion in September. Other household lending increased by KRW 2.4 trillion after falling by KRW 5.4 trillion, partly reflecting a return to growth in unsecured loans.

Banks’ household lending rose by KRW 5.0 trillion, compared with KRW 0.6 trillion in September. Nonbank lenders recorded a KRW 1.4 trillion increase after a KRW 2.7 trillion decline. Authorities attributed continued mortgage growth partly to increased disbursements of previously approved group loans for housing developments, despite declining housing transactions in the Seoul metropolitan area. Group lending increased by KRW 2.4 trillion, compared with KRW 1.7 trillion in September.

Household lending remains within aggregate targets, after the annual growth target was raised in August from 1.5% to around 3% to accommodate housing supply and genuine financing needs. Authorities urged lenders to avoid abrupt, blanket credit cutoffs and reiterated plans to protect funding for young people, households on lower incomes and regions outside the capital area while curbing speculative borrowing. An ongoing review across the financial sector covers high-risk business loans originated since 2021 and runs through December 2026. Detected misuse triggers loan recovery and restrictions on new borrowing across the financial sector for three years for a first violation and 10 years for a second.