Household Loans at Major Banks Increase by 3 Trillion Won... Loan Broker Services Resume

Mortgage Loan Growth Hits a Yearly High
Group Loans See Remarkable Increase
Unsecured Loans Decline as "Debt-Fueled Investments" Drop Amid Stock Market Uncertainty

Household loans from major commercial banks increased by 3 trillion won in just one month. In particular, due to the easing of regulations on final payment loans, mortgage loans surged significantly. On the other hand, unsecured loans decreased as so-called "debt investment" declined amid uncertainty in the stock market.

According to the financial sector on September 2, the balance of household loans at the five major commercial banks (Shinhan Bank, KB Kookmin Bank, Hana Bank, Woori Bank, and NH Nonghyup Bank) reached 782.1192 trillion won at the end of last month, up by 3.1401 trillion won compared to the end of the previous month (778.9791 trillion won).

The increase in household loans is attributed to the government's relaxation of its total household loan growth target. Through its measures announced on August 13, the government raised the target for managing the growth rate of household loans in the financial sector from 1.5% to 3%.

By loan type, mortgage loan balances increased by more than 3 trillion won. The balance of mortgage loans at the end of last month was 621.2730 trillion won, up by 3.3319 trillion won from the end of July (617.9411 trillion won). This is the largest monthly increase so far this year. The balance stood at 610.1245 trillion won at the end of January, 610.7211 trillion won at the end of February, 610.3339 trillion won at the end of March, 612.2443 trillion won at the end of April, 613.3880 trillion won at the end of May, and 615.1456 trillion won at the end of June.

In particular, group loans showed a noticeable upward trend. The balance of group loans at the end of last month stood at 149.2970 trillion won, an increase of 1.0544 trillion won from the end of July (148.2426 trillion won). This was also the largest monthly increase so far in 2026. The balance was 149.8049 trillion won at the end of January, 147.6701 trillion won at the end of February, 145.9777 trillion won at the end of March, 146.1978 trillion won at the end of April, 146.7289 trillion won at the end of May, and 147.5895 trillion won at the end of June, showing a downward trend in the first quarter.

Group loans are typically used for expenses related to apartment relocation, interim payments, and final payments. The increase in the number of apartment move-ins in the Seoul metropolitan area during the second half of the year is also seen as a factor behind the rise in group loans. Additionally, as group loans were excluded from the total household loan management, banks have found it easier to supply funds.

Some commercial banks have also reopened loan channels for genuine home buyers by resuming mortgage loan applications through loan brokers. Hana Bank and Shinhan Bank resumed accepting mortgage and lease loan applications through loan brokers from the previous day. Earlier, on July 31, NH Nonghyup Bank lifted restrictions on handling mortgage-loan guarantee (MCG) products. To meet household loan targets, banks had previously managed lending by suspending mortgage and lease loan applications through brokers.

Meanwhile, demand deposits (including MMDA), which earn little interest and are typically considered idle funds waiting for investment opportunities, decreased. The balance of demand deposits at the end of last month was 664.7300 trillion won, down by 1.1579 trillion won from 665.8879 trillion won at the end of July. As the Bank of Korea raised its base rate for two consecutive months and volatility in the domestic stock market increased, funds moved to term deposits that provide fixed interest rates.

Unsecured loans also declined for the first time in four months. The balance of unsecured loans at the five banks fell by 181.5 billion won from the previous month to 109.5718 trillion won. This stands in sharp contrast to the trend in May (2.1741 trillion won increase), June (2.1550 trillion won increase), and July (1.0829 trillion won increase), when unsecured loans had increased by more than 1 trillion won for three consecutive months.

A banking industry official said, "We believe that the decrease in demand deposits and unsecured loans is due to the waning enthusiasm for the stock market and the strengthening of regulations on leveraged investment in single stocks."

This content was produced with the assistance of AI translation services.