The South Korea Financial Supervisory Service reported that outstanding household loans across all financial sectors increased by a preliminary KRW 8.3 trillion in June 2026, down from KRW 9.3 trillion in May. Home-backed mortgage lending accelerated to KRW 4.5 trillion amid increased housing transactions and apartment subscription group lending, while growth in other loans slowed to KRW 3.7 trillion as banks applied measures to curb credit lending. Bank household loans rose by KRW 7.6 trillion, compared with KRW 6.9 trillion in May, driven by faster growth in banks’ own and policy-based mortgages. Nonbank household lending slowed sharply to KRW 0.7 trillion from KRW 2.4 trillion, as specialized credit finance companies and savings banks recorded declines. Financial companies were urged to manage household loan growth because the lag between housing transactions and mortgage issuance could keep mortgage volumes elevated. The update also called for proactive controls on credit lending amid potential stock-investment demand and stronger management of companies’ internal employee lending programs to limit housing-market instability.
South Korea Financial Supervisory Service2026-08-06
South Korea Financial Supervisory Service reports household loan growth slowed to KRW 8.3 trillion in June
The South Korea Financial Supervisory Service reported that household loans increased by KRW 8.3 trillion in June 2026, slowing from KRW 9.3 trillion in May. Mortgage growth accelerated to KRW 4.5 trillion, while other loan growth eased to KRW 3.7 trillion. Financial companies were urged to tighten management of mortgage and credit loan growth.