Why did household loans at major Korean banks fall in September 2026?

The decline was mainly attributed to tight borrowing regulations and a drop in credit loans. Mortgage lending still increased, but not enough to offset the fall in credit loans.

How much were household loans and mortgage loans at the five major banks at the end of September 2026?

Outstanding household loans totaled 780.83 trillion won, down 1.28 trillion won from the previous month. Mortgage loans reached 621.39 trillion won after rising 125 billion won in September.

What did the Bank of Korea do to interest rates before the September household loan decline?

The central bank raised the benchmark rate to 3 percent over two straight meetings in July and August. That was the first consecutive rate hike sequence since January 2023.

Household loans fall for 1st time in six months on tightened rules, higher rates

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Summary

Household loans at five major banks fell for the first time in six months in September as tighter borrowing regulations and higher rates weighed on lending. Outstanding household loans at the lenders came to 780.83 trillion won at end-September, down 1.28 trillion won from a month earlier. Credit loans drove the decline, while mortgage loans still rose. The Bank of Korea raised its benchmark rate to 3 percent in July and August.

Key Facts

Outstanding household loans at KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank and NH Nonghyup Bank stood at 780.83 trillion won at the end of September.
The monthly decline was 1.28 trillion won, ending a six-month run of increases.
Credit loans fell by 1.34 trillion won in September, while mortgage loans rose by 125 billion won to 621.39 trillion won.
The Bank of Korea raised its benchmark interest rate to 3 percent in July and August, marking the first back-to-back rate hikes since January 2023.

By Yonhap

Published Oct 1, 2026 4:56 pm KST

A view of apartment complexes, Seoul, Sunday. Yonhap

Household loans fall for 1st time in six months on tightened rules, higher rates

Household loans by major banks fell for the first time in six months last month in the face of tight borrowing regulations, data showed Thursday.

Outstanding household loans at five major lenders -- KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank and NH Nonghyup Bank -- stood at 780.83 trillion won ($575 billion) as of end-September, down 1.28 trillion won from the previous month, according to data compiled by the banks.

Household loans have been on a steady rise since April this year due to a rise in mortgage and credit loans.

The fall in household loans by banks was mainly attributed to a decline in credit loans, which posted a decrease of 1.34 trillion won last month.

Mortgage loans, meanwhile, continued to rise, gaining 125 billion won in September to 621.39 trillion won at the end of last month, according to the data.

The Bank of Korea raised the benchmark interest rate to 3 percent over two straight meetings in July and August, marking the first back-to-back rate hikes since January 2023, when the central bank raised the rate at seven consecutive meetings starting in April 2022.

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