In August 2025, the outstanding balance of household loans across all financial sectors increased KRW4.7 trillion (preliminary), rising at a faster pace compared with the previous month (up KRW2.3 trillion).
(By Type) Home-backed mortgage loans increased KRW5.1 trillion, growing at a somewhat faster pace compared with the previous month (up KRW4.2 trillion). Banks (up KRW3.4 trillion → up KRW3.9 trillion) and nonbanks (up KRW0.8 trillion → up KRW1.3 trillion) both saw the pace of growth accelerating.
Other types of loans dropped KRW0.4 trillion, declining at a slower pace compared with the previous month (down KRW1.9 trillion) as credit loans edged down at a slower pace (down KRW1.1 trillion → down KRW0.3 trillion).
(By Sector) In August 2025, household loans in the banking sector rose KRW4.2 trillion, growing at a faster pace compared with the previous month (up KRW2.8 trillion). Banks’ own mortgage loan products (up KRW2.2 trillion → up KRW2.7 trillion) increased at an expanded level, while policy-based loans maintained a similar level of growth (up KRW1.2 trillion → up KRW1.2 trillion). Other types of loans (down KRW0.6 trillion → up KRW0.3 trillion) in the banking sector shifted back up from the decline a month ago.
In the nonbanking sector, household loans grew KRW0.6 trillion, turning back up from the decline of KRW0.5 trillion in the previous month. Mutual finance businesses (up KRW0.4 trillion → up KRW1.2 trillion) saw the pace of growth accelerating, while savings banks (down KRW0.3 trillion → up KRW0.03 trillion) saw an increase from the decline a month ago. Insurance companies (down KRW0.4 trillion → down KRW0.4 trillion) and specialized credit finance businesses (down KRW0.2 trillion → down KRW0.2 trillion) maintained similar levels of decline compared with the previous month.
(Assessment) In August (up KRW4.7 trillion), household loans grew at a notably slower pace compared with the same month a year ago (up KRW9.7 trillion) but expanded at a somewhat faster pace when compared with the previous month (up KRW2.3 trillion). This is mainly due to seasonal demand for mortgage loans (up KRW4.2 trillion → up KRW5.1 trillion) ahead of the start of a new semester, increased housing transactions leading up to August, and expanded demand for credit loans amid the summer vacation season.
Even when factoring in these seasonal factors, it is deemed favorable that the pace of growth seen in August was notably down from the same month a year ago. However, there still exist concerns and risk factors regarding the household debt situation, such as recent expectation for interest rate cuts and increases in housing prices. In this regard, the financial authorities will continue to closely monitor market situations and employ timely measures when deemed necessary to make sure that the pace of household loan growth stays on a stable course.
Moreover, the authorities will carry out on-site inspections as previously announced on September 7 to closely monitor financial companies’ implementation and compliance with the strengthened housing loan regulations. The authorities will regularly have meetings with related organizations and financial companies and make utmost efforts to facilitate a seamless adoption of these measures in the market.
* Please refer to the attached PDF for details.