Why did Korea's household credit exceed 2,000 trillion won in the second quarter?

The rise was driven by increased home-backed loans and stock loans. Industry sources said households borrowed more even as the government tried to cool the housing market and restrain debt.

How much household credit did Korea have at the end of March 2026?

Household credit stood at an all-time high of 1,993 trillion won at the end of March. That was 14 trillion won more than the end of the previous year and extended the streak of quarterly increases to seven.

What has happened to Korea's household debt growth recently?

Growth slowed for the second straight quarter, but it still remained strong enough to push household credit past 2,000 trillion won in the second quarter. The article also says household credit rose 56.1 trillion won in 2025, the fastest annual increase since 2021.

Household credit surely to have topped $1.41 tril. mark for 1st time

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Summary

Household credit in Korea is surely to have topped the 2,000 trillion-won mark in the second quarter, driven by home-backed loans and stock loans. Industry sources said it reached an all-time high of 1,993 trillion won at the end of March, up 14 trillion won from the end of last year. The pace of growth slowed for a second straight quarter, but outstanding household loans still rose enough to push credit above the threshold. The government has tried to cool the housing market and curb debt, yet home demand and stock loans have kept rising.

Key Facts

Household credit reached an all-time high of 1,993 trillion won at the end of March, up 14 trillion won from the end of last year.
The increase marked the seventh consecutive quarterly rise, even though growth slowed for the second straight quarter.
Outstanding household loans by all financial institutions are estimated to have risen by at least 21 trillion won during the second quarter.
For full-year 2025, household credit increased by 56.1 trillion won, or 2.9 percent, from a year earlier.
That 2025 rise was the fastest growth since 2021, according to the data.

By Yonhap

Published Aug 16, 2026 10:19 am KST

A view of apartment complexes in Seoul seen from the Lotte World Tower, Wednesday / Yonhap

Household credit in Korea is surely to have topped the 2,000 trillion-won ($1.41 trillion) landmark in the second quarter, driven by increased home-backed loans and stock loans, according to industry sources Sunday.

According to the sources, household credit reached an all-time high of 1,993 trillion won at the end of March, up 14 trillion won from the end of last year, which represents the seventh consecutive quarterly increase, though the pace of growth slowed for the second straight quarter.

Household credit refers to credit purchases and loans extended to households by financial institutions.

But outstanding household loans by all financial institutions are estimated to have risen by at least 21 trillion won during the second quarter of the year, which means outstanding household credit surely surpassed the 2,000 trillion-won threshold.

The government has implemented a series of measures to cool the overheated housing market and curb household debt.

But demand for homes has not weakened, and stock loans have been on the rise in tandem with a bull run in the stock market.

For the full year of 2025, household credit increased by 56.1 trillion won, or 2.9 percent, from a year earlier, marking the fastest growth since 2021, the data showed.

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