The Financial Supervisory Service published preliminary data showing that household loans across South Korea’s financial sectors increased by KRW 2.6 trillion in August, down from KRW 6.4 trillion in July. Overall growth slowed as other lending, including credit loans, declined for the first time in four months, offsetting faster mortgage growth. Mortgage loans rose by KRW 4.3 trillion, compared with KRW 3.6 trillion in July, partly reflecting balance payments linked to increased housing transactions for new occupants. Other loans fell by KRW 1.7 trillion after rising by KRW 2.8 trillion. Bank household lending increased by KRW 3.4 trillion, while nonbank lending declined by KRW 0.8 trillion. Financial authorities warned that mortgage growth could accelerate because of seasonal moving demand and additional lending capacity under housing finance measures announced on Aug. 13. They will monitor household lending, seek to direct the upward adjusted annual growth target toward housing supply and support for young adults and non-speculative homebuyers, and review fixed rate mortgages to promote longer term products in the banking sector.
2026-09-09South Korea Financial Supervisory Service
South Korea’s Financial Supervisory Service reports household loan growth slowed to KRW 2.6 trillion in August
South Korea’s Financial Supervisory Service reported that household loans increased by KRW 2.6 trillion in August, slowing from KRW 6.4 trillion in July as non-mortgage lending declined. Mortgage loans rose by KRW 4.3 trillion, and authorities warned that seasonal demand and expanded lending capacity could accelerate growth.