South Korea’s Financial Supervisory Service published preliminary September 2025 data showing the outstanding balance of household loans across all financial sectors rose by KRW 1.1 trillion, slowing sharply from the KRW 4.7 trillion increase in August and the KRW 5.4 trillion rise in September 2024. Mortgage loans increased by KRW 3.6 trillion, while other types of household loans fell by KRW 2.4 trillion. By type, home-backed mortgage loans grew more slowly than in the prior month, with bank mortgage lending rising by KRW 2.5 trillion and nonbank mortgage lending by KRW 1.1 trillion. The contraction in other loans was led by a larger decline in credit loans, which fell by KRW 1.6 trillion. By sector, household lending at banks rose by KRW 2.0 trillion, with banks’ own mortgage products up KRW 1.4 trillion and policy-based loans up KRW 1.1 trillion, while other loans shifted from growth to a KRW 0.5 trillion decline. Nonbank household loans fell by KRW 0.9 trillion, including declines at insurance companies (down KRW 0.2 trillion) and specialized credit finance businesses (down KRW 1.1 trillion), alongside slower growth in mutual finance businesses (up KRW 0.9 trillion); savings banks moved from a small increase to a KRW 0.5 trillion decline. The release links the slower overall pace to tightened housing loan regulations introduced on June 27 and notes additional housing loan regulations introduced on October 15, with plans to inspect firms’ compliance and continue monitoring household loan and housing market conditions.

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