The South Korea Financial Services Commission reported that outstanding household loans across all financial sectors increased by a preliminary KRW3.5 trillion in April 2026, matching the pace of the previous month. Mortgage lending accelerated to KRW5.5 trillion from KRW3.0 trillion, but this was offset by a KRW2.0 trillion decline in other loans from a KRW0.5 trillion increase a month earlier, with credit loans falling more sharply. Banks accounted for most of the increase, with household loans rising KRW2.2 trillion after KRW0.5 trillion in the previous month. Banks' own mortgage loans rebounded to KRW1.3 trillion from a KRW1.5 trillion decline, while policy-based mortgages slowed slightly to KRW1.4 trillion and other lending turned negative. In the nonbanking sector, growth slowed to KRW1.3 trillion from KRW3.1 trillion as mutual finance businesses decelerated, savings banks remained in decline, and insurance companies and specialized credit finance businesses moved back into contraction. Potential risks remain because higher housing transactions in the first quarter lifted growth in banks' own mortgage loans. Financial authorities will closely monitor banks' mortgage loan management targets to support housing market stability and continue inspections of breaches of lending rules, including misuse of business loans, and other rule-breaking activity in the housing market.

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