South Korea Financial Services Commission reports June household loan growth slowed to KRW8.3 trillion as mortgage lending accelerated

The South Korea Financial Services Commission published preliminary June 2026 data showing household loans across all financial sectors rose KRW8.3 trillion, slower than the KRW9.3 trillion increase in May. The deceleration came from slower growth in other loans, especially credit loans, even as home-backed mortgage lending picked up. Mortgage loans increased KRW4.5 trillion, up from KRW4.0 trillion in the previous month, while other loans rose KRW3.7 trillion, down from KRW5.3 trillion, with credit loan growth easing to KRW2.6 trillion from KRW3.6 trillion. By sector, household loans at banks increased KRW7.6 trillion, faster than the KRW6.9 trillion rise in May, supported by stronger growth in banks' own mortgage loans and policy-based mortgage loans. In the nonbanking sector, household loans rose KRW0.7 trillion, down from KRW2.4 trillion, as growth slowed sharply at mutual finance businesses and turned negative at specialized credit finance businesses and savings banks, while insurance companies saw a slight pickup. The commission said recent increases in housing transactions and group lending for apartment subscription were driving faster mortgage growth, but banks' self-regulatory measures helped slow credit loan expansion and overall household loan growth. The commission warned mortgage lending could remain elevated because of the lag between housing transactions and loan issuance, and urged financial companies to strengthen controls over household loan growth. It also called for proactive management of credit loans in case demand linked to stock investment rises, and asked companies to tighten internal employee lending programs to help prevent instability in the housing market.