In September 2026, the outstanding balance of household loans across all financial sectors dropped KRW2.2 trillion (preliminary), edging down for the first time since December 2025 (down KRW1.2 trillion).

(By Type)  Home-backed mortgage loans went up KRW3.3 trillion, growing at a slower pace compared with the previous month (up KRW4.3 trillion). Banks (up KRW4.1 trillion → up KRW2.9 trillion) saw a slower pace of mortgage loan growth, while nonbanks (up KRW0.2 trillion → up KRW0.4 trillion) saw a somewhat faster pace of mortgage loan growth.

Other types of loans dropped KRW5.5 trillion, declining at a considerably faster pace from the previous month (down KRW1.5 trillion) with credit loans falling more rapidly (down KRW0.4 trillion → down KRW3.0 trillion).

(By Sector)  In September 2026, household loans in the banking sector went up KRW0.6 trillion, growing at a notably slower pace compared with the previous month (up KRW3.5 trillion). Banks’ own mortgage loans (up KRW2.9 trillion → up KRW1.8 trillion) increased at a slower pace, while policy-based mortgage loans (up KRW1.1 trillion → up KRW1.1 trillion) maintained the same level of growth and other types of loans (down KRW0.6 trillion → down KRW2.3 trillion) fell at a faster pace compared with the previous month.

In the nonbanking sector, household loans dropped KRW2.8 trillion, falling at a faster pace from the previous month (down KRW0.7 trillion). Mutual finance businesses (down KRW0.4 trillion → down KRW0.7 trillion), insurance companies (down KRW0.3 trillion → down KRW0.8 trillion), and specialized credit finance businesses (down KRW0.3 trillion → down KRW0.9 trillion) saw household loans declining more rapidly, while savings banks (up KRW0.3 trillion → down KRW0.4 trillion) saw household loans edging back lower from a growth seen in the previous month.

(Assessment)  In September 2026, the outstanding balance of household loans across all financial sectors saw a net decrease (down KRW2.2 trillion) for the first time this year as mortgage loans (up KRW4.3 trillion → up KRW3.3 trillion) edged up at a slower pace and other types of loans (down KRW1.5 trillion → down KRW5.5 trillion) dropped at a faster pace. This is mainly attributable to a drop in housing transactions, bad debt write-offs toward the end of the quarter, holiday bonuses, and other seasonal factors.

With the total volume of annual household debt growth target raised to 3.0 percent from 1.5 percent previously and as financial companies have been instructed to separately manage their group lending portion of household debt for new apartment subscription, it appears to be unlikely that borrowers will face a credit crunch toward the end of this year. However, as it is still possible to see housing prices growing higher and credit loans edging up in the coming months, it is necessary to continue to stay vigilant and ensure a stable management over household debt.

From October 19 this year, there will be expanded housing loan support measures made available for young adults, especially for newlyweds, which is part of the government’s comprehensive plan to boost housing supply. To ensure a seamless implementation of the support program, financial companies are asked to make utmost efforts to check their computing systems, provide relevant employee training, and distribute adequate information to customers.

Financial authorities will continue to work on seamless implementation of housing finance measures to boost the supply of housing and better assist non-speculative homebuyers and renters.

* Please refer to the attached PDF for details.