In October 2026, the outstanding balance of household loans across all financial sectors increased KRW6.4 trillion (preliminary), edging back up from a decline of KRW2.2 trillion in the previous month.

(By Type)  Home-backed mortgage loans grew KRW4.0 trillion, expanding at a faster pace compared with the previous month (up KRW3.2 trillion). Banks (up KRW2.9 trillion → up KRW3.3 trillion) and nonbanks (up KRW0.3 trillion → up KRW0.7 trillion) both saw household loans rising more rapidly.

Other types of loans added KRW2.4 trillion in October, shifting back up from a drop of KRW5.4 trillion seen in the previous month as credit loans (down KRW2.9 trillion → up KRW1.2 trillion) turned back up from September.

(By Sector)  In October 2026, household loans in the banking sector rose KRW5.0 trillion, edging up rapidly from a growth of KRW0.6 trillion seen in the previous month. Banks’ own mortgage loans (up KRW1.8 trillion → up KRW2.2 trillion) and policy-based mortgage loans (up KRW1.1 trillion → up KRW1.2 trillion) both saw the pace of growth accelerating, while other types of loans (down KRW2.3 trillion → up KRW1.7 trillion) also edged up from a decline seen in the previous month.

In the nonbanking sector, household loans went up KRW1.4 trillion, shifting back up from a decline of KRW2.7 trillion in the previous month. Mutual finance businesses (down KRW0.7 trillion → up KRW0.2 trillion), insurance companies (down KRW0.8 trillion → up KRW0.3 trillion), savings banks (down KRW0.4 trillion → up KRW0.2 trillion), and specialized credit finance businesses (down KRW0.9 trillion → up KRW0.8 trillion) all saw household loans edging back up from declines seen in the previous month.

(Assessment)  In October 2026, the outstanding balance of household loans across all financial sectors increased KRW6.4 trillion as mortgage loans (up KRW3.2 trillion → up KRW4.0 trillion) grew at an expanded level and other types of loans (down KRW5.4 trillion → up KRW2.4 trillion) saw a net increase from a significant drop seen in the previous month. Despite recently declining volumes in housing transactions, an expanded volume of group lending actually being executed for previously approved loans has kept mortgage loans trending upwards and credit loans also expanded at a greater level.

The total volume of household loans is still being managed within the previously announced annual target level. However, financial companies are asked to take steps to make sure that there is no wide-ranging credit crunch taking place following an excessive concentration of lending over a particular period.

In the meantime, financial authorities plan to continue to work to stamp out speculative demand through rigorous inspections on illegal practices in the housing market, while making sure that there is an adequate supply of credit available for non-speculative homebuyers and renters, especially for young adults and those residing outside the Seoul metropolitan area.

* Please refer to the attached PDF for details.