South Korea's Financial Services Commission reported that outstanding household loans across the financial sector increased by a preliminary KRW 6.2 trillion in July 2026, down from KRW 8.3 trillion in June. Mortgage lending growth slowed to KRW 3.5 trillion from KRW 4.5 trillion, while other lending rose KRW 2.7 trillion, compared with KRW 3.8 trillion previously. The commission attributed the moderation to financial companies’ self-regulatory and voluntary management measures. Bank household lending increased by KRW 5.4 trillion, slowing from KRW 7.6 trillion, while nonbank lending rose by KRW 0.8 trillion, unchanged from June. The commission called for continued strict management given potential housing price increases in the Seoul metropolitan area, stronger housing transactions and seasonal demand. Under housing finance measures introduced on Aug. 13, financial companies’ annual lending growth targets will be adjusted upward. The resulting capacity must be directed to eligible non-speculative homebuyers and renters, including through relocation loans, and should not be treated as a broader easing of household lending controls.
South Korea Financial Supervisory Service2026-08-14
South Korea's Financial Services Commission reports household loan growth slowed to KRW 6.2 trillion in July
South Korea's Financial Services Commission reported that household loans increased by a preliminary KRW 6.2 trillion in July, slowing from KRW 8.3 trillion in June. Mortgage and other loan growth both moderated. Financial companies must direct additional capacity created by revised annual targets toward eligible non-speculative homebuyers and renters, without treating it as a general easing of lending controls.