South Korea’s Financial Services Commission (FSC) published preliminary March 2026 data showing the outstanding balance of household loans across all financial sectors increased by KRW 3.5 trillion, a faster pace than the KRW 2.9 trillion rise in the previous month. By type, home-backed mortgage loans rose KRW 3.0 trillion, slowing from KRW 4.1 trillion, with growth easing in both the banking sector (up KRW 0.3 trillion to up KRW 0.003 trillion) and the nonbanking sector (up KRW 3.8 trillion to up KRW 3.0 trillion). Other household loans increased by KRW 0.5 trillion after declining by KRW 1.2 trillion in the prior month, as credit loans fell by a smaller amount (down KRW 1.0 trillion to down KRW 0.2 trillion). By sector, banking-sector household loans rose KRW 0.5 trillion after a KRW 0.4 trillion decline, as banks’ own mortgage loans fell faster (down KRW 1.1 trillion to down KRW 1.5 trillion) while policy-based mortgage loans increased slightly faster (up KRW 1.4 trillion to up KRW 1.5 trillion). Nonbanking-sector household loans increased KRW 3.0 trillion, slowing from KRW 3.3 trillion, led by mutual finance businesses (up KRW 3.1 trillion to up KRW 2.7 trillion) and faster growth at insurance companies (up KRW 0.2 trillion to up KRW 0.6 trillion). The FSC attributed the overall acceleration mainly to group lending from mutual finance businesses being reflected in the statistics ahead of a suspension of new lending. The FSC flagged potential volatility in household loan growth given the scheduled end on 9 May of the capital gains tax exemption for multi-home owners and ongoing risks linked to the conflict in the Middle East. Financial companies were urged to ensure smooth implementation of the recently announced household debt management measures effective from 17 April, while the FSC indicated it will consider additional steps including possible limits on lending to nonresident single-home owners and further tightening of the debt service ratio (DSR) rule.
South Korea Financial Services Commission 2026-04-08
South Korea Financial Services Commission reports March household loans up KRW 3.5 trillion and urges readiness for 17 April debt management measures
South Korea’s Financial Services Commission reported that outstanding household loans rose by KRW 3.5 trillion in March 2026, with slower growth in home-backed mortgages but a rebound in other household lending and continued expansion in the nonbanking sector. The acceleration was mainly driven by group lending by mutual finance businesses ahead of a suspension of new lending. The authority warned of potential volatility around the expiry of capital gains tax exemptions and geopolitical risks, urged financial companies to implement new household debt management measures from 17 April, and signalled possible further steps, including limits on lending to nonresident single-home owners and tighter debt service ratio rules.