In June 2025, the outstanding balance of household loans across all financial sectors increased KRW6.5 trillion (preliminary), rising at a faster pace compared with the previous month (up KRW5.9 trillion).
(By Type) Home-backed mortgage loans rose KRW6.2 trillion, growing at a faster pace compared with the previous month (up KRW5.6 trillion). Banks saw an expanded pace of growth in mortgage loans (up KRW4.1 trillion → up KRW5.1 trillion), while nonbanks saw a somewhat slower pace of growth from the previous month (up KRW1.5 trillion → up KRW1.1 trillion).
Other types of loans went up KRW0.3 trillion, growing at a slightly slower pace compared with the previous month (up KRW0.4 trillion), with credit loans rising at a slower pace (up KRW0.8 trillion → up KRW0.7 trillion).
(By Sector) In June, household loans in the banking sector rose at a faster pace compared with the previous month (up KRW5.2 trillion → up KRW6.2 trillion). Banks’ own mortgage loan products grew at an expanded pace (up KRW2.5 trillion → up KRW3.8 trillion), while policy-based loans grew at a slightly slower pace (up KRW1.6 trillion → up KRW1.3 trillion). Other types of loans in the banking sector rose at a similar pace compared with a month ago (up KRW1.1 trillion → up KRW1.1 trillion).
In the nonbanking sector, household loans increased KRW0.3 trillion, rising at a slower pace compared with the previous month (up KRW0.7 trillion). Mutual finance businesses (up KRW0.8 trillion → up KRW1.1 trillion) saw an expanded pace of growth, while savings banks (up KRW0.3 trillion → down KRW0.04 trillion) saw the growth trend shifting back down. Insurance companies (down KRW0.3 trillion → down KRW0.2 trillion) saw a somewhat slower pace of decline, while specialized credit finance businesses (down KRW0.1 trillion → down KRW0.6 trillion) saw a faster pace of decline compared with the previous month.
(Assessment) The expanded pace of household loan growth in June can be seen as a consequence of increased housing transactions from February this year. Although the volume of mortgage loan applications at banks has been declining since the June 27 announcement of household debt management measures, considering the volume of housing transactions already completed and that of mortgage loans already approved, the trend of growth in household loans may continue to stay for a while.
In this regard, the financial authorities and related organizations will continue to closely monitor the effects of the announced measures to counter a potential overheating of the housing market and control the pace of household debt growth. At the same time, the government and related authorities will strictly respond to illegitimate and abnormal transaction activities in the housing market and strengthen efforts to prevent regulatory circumvention related to housing loans.
Considering the current level of interest rates and repayment periods for mortgage loans, authorities assessed that it is not likely to see the demand for housing finance shifting towards peer-to-peer lending or consumer credit businesses, although it remains necessary to step up monitoring in this regard. With respect to the newly introduced six-month move-in (primary residence registration) requirement for those purchasing houses with mortgage loans in the Seoul metropolitan area and/or speculation regulated zones, authorities plan to strengthen inspection and bring stern measures against rule-breakers.
At the meeting with relevant authorities, Secretary General Kwon Dae-young of the Financial Services Commission spoke about the importance of individual financial companies making efforts to prevent regulatory circumvention and strictly adhering to periodic management targets. Secretary General Kwon also spoke about the need to make sure that these measures cause no harm to non-speculative homebuyers and lower income households.
* Please refer to the attached PDF for details.