In September 2025, the outstanding balance of household loans across all financial sectors increased KRW1.1 trillion (preliminary), rising at a slower pace compared with the previous month (up KRW4.7 trillion).

(By Type)  Home-backed mortgage loans went up KRW3.6 trillion, growing at a slower pace compared with the previous month (up KRW5.1 trillion). Banks (up KRW3.8 trillion → up KRW2.5 trillion) and nonbanks (up KRW1.3 trillion → up KRW1.1 trillion) both saw the pace of growth decelerating.

Other types of loans dropped KRW2.4 trillion, declining at a faster pace compared with the previous month (down KRW0.4 trillion) with credit loans falling at an expanded pace (down KRW0.3 trillion → down KRW1.6 trillion).

(By Sector)  In September 2025, household loans in the banking sector rose KRW2.0 trillion, slowing down from the growth of KRW4.1 trillion a month ago. Banks’ own mortgage loan products (up KRW2.7 trillion → up KRW1.4 trillion) rose at a slower pace, while policy-based loans increased at a similar level from a month ago (up KRW1.1 trillion → up KRW1.1 trillion). Other types of loans (up KRW0.3 trillion → down KRW0.5 trillion) in the banking sector shifted back down from the growth seen a month ago.

In the nonbanking sector, household loans edged down KRW0.9 trillion, shifting back down from the growth of KRW0.6 trillion in the previous month. Insurance companies (down KRW0.5 trillion → down KRW0.2 trillion) saw the pace of decline decelerating, while specialized credit finance businesses (down KRW0.2 trillion → down KRW1.1 trillion) saw the pace of decline accelerating. Mutual finance businesses (up KRW1.2 trillion → up KRW0.9 trillion) saw the pace of growth slowing down, while savings banks (up KRW0.03 trillion → down KRW0.5 trillion) saw a decline from the growth seen a month ago.

(Assessment)  In September (up KRW1.1 trillion), household loans grew at a notably slower pace compared with the previous month (up KRW4.7 trillion) and the same month a year ago (up KRW5.4 trillion). With the effects of the tightened housing loan regulations (introduced on June 27) becoming more evident through a decline in housing transactions, new mortgage loans (up KRW5.1 trillion → up KRW3.6 trillion) edged up at a much slower pace compared with the previous month. Other types of loans (down KRW0.4 trillion → down KRW2.4 trillion) also declined at a faster pace as credit loans (down KRW0.3 trillion → down KRW1.6 trillion) went down more rapidly due to seasonal factors.

Although the pace of household loan growth appears to be on a stable course due to the effects of the tightened housing loan regulations (introduced on June 27), in certain parts of the Seoul metropolitan area, thTere are signs of market overheating with increasing housing transactions. In this regard, the authorities introduced additional housing loan regulations on October 15 to more proactively and effectively manage the pace of household loan growth. The financial authorities plan to thoroughly inspect financial companies to monitor their compliance, while continuing to keep close track of trends in household loans and housing market situations to make sure that the newly introduced measures are seamlessly adopted and implemented in the market.

* Please refer to the attached PDF for details.