Household Loans Rise 6.4 Trillion Won in October, Rebounding After One-Month Decline
Mortgage Loans Rise 4 Trillion Won, Credit Loans 1.2 Trillion Won
Increases Across Banks and Non-Bank Financial Institutions
Volatility in Group and Credit Loans a Factor
Household loans across the financial sector increased by 6.4 trillion won in October, reversing a month-long decline. Mortgage lending rose more sharply as disbursements of previously approved group loans increased, while credit loans also returned to growth. Financial authorities urged financial institutions to prevent a “lending cliff” caused by a concentration of loan demand at year-end.
According to the “October 2026 Household Loan Trends (Preliminary)” released on November 11 by the Financial Services Commission and the Financial Supervisory Service, household loans across the financial sector, which fell by 2.2 trillion won in September, rose again in October. The increase also exceeded the 4.9 trillion won recorded in October last year. The cumulative increase from January through October this year was 42.4 trillion won.
Mortgage loans increased by 4 trillion won, a larger gain than the 3.2 trillion won increase in September. Mortgage lending by banks rose from 2.9 trillion won to 3.3 trillion won, while lending by non-bank financial institutions increased from 300 billion won to 700 billion won. Group loans across the financial sector rose from 1.7 trillion won to 2.4 trillion won.
Other loans reversed course, rising by 2.4 trillion won in October after falling by 5.4 trillion won in September. Credit loans, a component of other loans, increased by 1.2 trillion won in October after declining by 2.9 trillion won in September.
Household loans by banks increased by 5 trillion won, a sharp acceleration from the 600 billion won increase in September. Banks’ own mortgage lending rose from 1.8 trillion won to 2.2 trillion won, while policy-backed loans increased from 1.1 trillion won to 1.2 trillion won. Other bank loans reversed course, rising by 1.7 trillion won after falling by 2.3 trillion won.
Household loans by non-bank financial institutions also turned around, rising by 1.4 trillion won in October after falling by 2.7 trillion won in September. Loans by mutual finance institutions shifted from a 700 billion won decline to a 200 billion won increase, while insurance loans went from an 800 billion won decline to a 300 billion won increase. Savings banks and specialized credit finance companies also reversed course, rising by 200 billion won and 800 billion won, respectively, in October after falling by 400 billion won and 900 billion won.
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Financial authorities said that mortgage lending continued to rise as disbursements of previously approved group loans increased, despite a decline in housing transactions in the Seoul metropolitan area, and that credit loan volatility had also increased. The authorities urged financial institutions to “do their utmost to prevent a uniform lending cliff caused by a concentration of loan demand in a particular period, even though household loans across the financial sector are currently being managed within the overall loan target.”
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