In May 2026, the outstanding balance of household loans across all financial sectors increased KRW9.3 trillion (preliminary), growing at a faster pace compared with the previous month (up KRW3.5 trillion).

(By Type)  Home-backed mortgage loans edged up KRW4.0 trillion, rising at a slower pace compared with the previous month (up KRW5.5 trillion). Mortgage loans rose more rapidly in the banking sector (up KRW2.7 trillion → up KRW3.2 trillion), while growing at a slower pace in the nonbanking sector (up KRW2.8 trillion → up KRW0.8 trillion).

Other types of loans went up KRW5.3 trillion, edging back up rapidly from a decline of KRW2.0 trillion a month ago, with credit loans (down KRW0.9 trillion → up KRW3.4 trillion) bouncing back up at rapidly.

(By Sector)  In May 2026, household loans in the banking sector rose KRW6.9 trillion, growing more rapidly from the previous month (up KRW2.1 trillion). Banks’ own mortgage loans (up KRW1.4 trillion → up KRW2.1 trillion) increased at a faster pace, while policy-based mortgage loans (up KRW1.4 trillion → up KRW1.1 trillion) grew at a slower pace. Other types of loans (up KRW3.7 trillion) turned back up from a drop of KRW0.6 trillion in the previous month.

In the nonbanking sector, household loans went up KRW2.3 trillion, growing at a faster pace compared with the previous month (up KRW1.4 trillion). Mutual finance businesses (up KRW2.1 trillion → up KRW0.7 trillion) saw household loans rising at a slower pace, while insurance companies (down KRW0.4 trillion → up KRW0.9 trillion), specialized credit finance businesses (down KRW0.2 trillion → up KRW0.6 trillion), and savings banks (down KRW0.02 trillion → up KRW0.2 trillion) all saw household loans edging back higher from the previous month.

(Assessment)  In May 2026, home-backed mortgage loans (up KRW5.5 trillion → up KRW4.0 trillion) went up at a slower pace despite recent increases in housing transactions and group lending for apartment subscription. However, other types of loans (down KRW2.0 trillion → up KRW5.3 trillion) including credit loans expanded at a considerably fast pace due to increased demand during the family month and booming stock market investment.

As it remains possible to see both credit loans and mortgage loans growing more rapidly in the coming months particularly with the expiration (on May 9) of the deferral of heavier capital gains tax on multi-home owners compelling them to release houses for sale, financial companies are urged to continue to proactively and strictly adhere to their household loan management targets.

In this regard, the banking sector plans to tighten credit lending to high-income earners by reducing maximum loan limits available and providing exemption for early repayment fees.

In the meantime, financial authorities plan to hold weekly inspection meetings to check on financial companies’ household debt management targets.

The government will continue to work to ensure a consistent and rigorous management over household debt and take steps to introduce and implement additional policy tools when it becomes necessary.

* Please refer to the attached PDF for details.