In February 2025, the outstanding balance of household loans across all financial sectors increased KRW4.3 trillion (preliminary), shifting back up from the drop of KRW0.9 trillion in the previous month.
(By Type) Home mortgage loans increased KRW5.0 trillion, growing at a faster rate compared with the previous month (up KRW3.2 trillion). Mortgage loans expanded at a faster rate in the banking sector (up KRW1.7 trillion → up KRW3.5 trillion), while growing at a similar level in the nonbanking sector (up KRW1.5 trillion → up KRW1.5 trillion).
Other types of loans dropped KRW0.6 trillion, declining at a slower rate compared with the previous month (down KRW4.1 trillion), as credit loans shifted back up from a month ago (down KRW1.5 trillion → up KRW0.1 trillion).
(By Sector) Household loans in the banking sector rose KRW3.3 trillion, turning back up from the decline of KRW0.5 trillion a month ago. Policy-based loans grew at a faster rate (up KRW2.2 trillion → up KRW2.9 trillion), while banks’ own mortgage loans edged up from the decline in the previous month (down KRW0.6 trillion → up KRW0.6 trillion). Other types of loans including credit loans declined at a slower rate compared with the previous month (down KRW2.1 trillion → down KRW0.2 trillion).
In the nonbanking sector, household loans rose KRW1.0 trillion, turning back up from the decline of KRW0.5 trillion a month ago. Mutual finance businesses (down KRW0.1 trillion → up KRW0.8 trillion) and specialized credit finance businesses (down KRW0.1 trillion → up KRW0.3 trillion) saw household loans shifting back up from the previous month. Savings banks saw a drop of KRW0.02 trillion from the growth of KRW0.2 trillion a month ago. Household loans in the insurance sector dropped at a slower rate compared with the previous month (down KRW0.5 trillion → down KRW0.1 trillion).
(Assessment) The outstanding balance of household loans across all financial sectors edged up somewhat considerably in February as financial companies have begun to issue loans under their newly set annual issuance plans and also due to growing housing transactions ahead of the new school year. However, considering an expected increase in the repayment of policy loans and the easing demand for mortgage loans in March, the current pace of growth is deemed to be well within the manageable level. As there exist concerns about a potential increase in housing prices in certain areas of Seoul where housing regulations have been eased, financial authorities will continue to maintain a consistent policy stance over household debt management and closely monitor housing market activities and trends in mortgage loans in close coordination with related ministries. In addition, the authorities will take preemptive measures to prevent excessive spread of market anxiety, speculation or market disturbance amid concerns over a price spike in the housing market.
* Please refer to the attached PDF for details.