In March 2025, the outstanding balance of household loans across all financial sectors edged up KRW0.4 trillion (preliminary), growing at a slower rate compared with the previous month (up KRW4.2 trillion).

(By Type)  Home mortgage loans increased KRW3.4 trillion, as the pace of growth decelerated in both the banking (up KRW3.4 trillion → up KRW2.2 trillion) and nonbanking (up KRW1.5 trillion → up KRW1.1 trillion) sectors from a month ago.

Other types of loans dropped KRW3.0 trillion, declining at a faster rate compared with the previous month (down KRW0.7 trillion) as credit loans shifted back lower from a month ago (up KRW0.1 trillion → down KRW1.2 trillion).

(By Sector)  Household loans in the banking sector (up KRW3.3 trillion → up KRW1.4 trillion) grew at a slower rate, while shifting back lower in the nonbanking sector (up KRW0.9 trillion → down KRW1.0 trillion).

In the banking sector, policy-based loans rose at a slower rate compared with the previous month (up KRW2.8 trillion → up KRW1.5 trillion), while banks’ own mortgage loans increased at a slightly faster rate (up KRW0.6 trillion → up KRW0.7 trillion). Other types of loans including credit loans dropped at a faster rate from a month ago (down KRW0.2 trillion → down KRW0.9 trillion).

In the nonbanking sector, household loans grew at a slower rate in the mutual finance sector (up KRW0.8 trillion → up KRW0.3 trillion), while declining at a faster rate in the savings banks sector (down KRW0.03 trillion → down KRW0.2 trillion). Specialized credit finance businesses saw household loan growth turning back down (up KRW0.3 trillion → down KRW0.9 trillion), while insurance companies saw a similar level of drop from the previous month (down KRW0.1 trillion → down KRW0.1 trillion).

(Assessment)  The outstanding balance of household loans in March 2025 rose KRW0.4 trillion, edging up at a slower rate compared with the previous month (up KRW4.2 trillion), which shows a stable trend in the pace of growth. However, the high volume of housing market transactions taking place prior to the reinstatement of housing market regulations in March this year is expected to be reflected in household debt statistics in upcoming months. Thus, from after April, it will be a crucial period for household debt management.

Despite a relatively high level of increase seen in February, the growth of household loans in the first quarter shows a largely manageable level backed by banks’ own self-regulatory measures. As there are expectations of a rate cut in the second quarter, the financial sector should continue to make active and voluntary efforts to manage the pace of household debt growth according to their monthly and quarterly operational plans. The financial authorities will continue to work closely with the financial sector and related organizations and ensure a seamless implementation of specific measures included in this year’s household debt management plan.

* Please refer to the attached PDF for details.