The South Korea Financial Supervisory Service published preliminary October 2025 data showing the outstanding balance of household loans across all financial sectors increased by KRW4.8 trillion, a faster pace than September’s KRW1.1 trillion rise but slower than the KRW6.5 trillion increase recorded in October 2024. By type, home-backed mortgage loans rose KRW3.2 trillion, moderating from September’s KRW3.5 trillion increase, while other loans increased KRW1.6 trillion after a KRW2.4 trillion decline the prior month, driven mainly by credit loans shifting to a KRW0.9 trillion increase after a KRW1.6 trillion fall. By sector, banking-sector household loans increased KRW3.5 trillion (September: KRW1.9 trillion) and nonbanking-sector loans increased KRW1.3 trillion after a KRW0.8 trillion decline, with insurance companies and specialized credit finance businesses turning positive and mutual finance businesses accelerating while savings banks continued to decline at a slower pace. The Financial Supervisory Service attributed the October acceleration to stronger nonbank lending and a temporary rise in group mortgage lending for new apartment subscriptions. It noted that the impact on the housing market is expected to be limited given recent declines in banks’ new mortgage loan issuance, but added that higher housing transactions ahead of the October 15 housing market stabilization plan could still push up household loan growth in November and December, warranting continued close monitoring.

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