Key facts
- Banks' household loans increased by 7.6 trillion won in June.
- Total outstanding household loans reached 1,189.4 trillion won.
- Mortgage loans saw a 4.3 trillion won increase.
- Other household loans grew by 3.3 trillion won.
- Increased housing transactions and stock market participation fueled loan demand.
Household loans extended by South Korean banks saw a significant increase of 7.6 trillion won in June, bringing the total outstanding loans to 1,189.4 trillion won. This marks the sharpest monthly growth since August 2024.
The rise was attributed to increased demand for mortgages, driven by a higher number of housing transactions in the greater Seoul area and demand for interim payments for previously sold units. Additionally, other household loans grew as individual investors increased their participation in the stock market.
Mortgage loans specifically increased by 4.3 trillion won, while other household loans rose by 3.3 trillion won during the month. A Bank of Korea official noted that upward pressure on mortgage loans is expected to continue, given the ongoing property price growth in Seoul and surrounding Gyeonggi Province, which is experiencing over 10 percent annual increases amid supply concerns.