How much did South Korean bank household loans increase in September?

Household loans extended by banks increased by 0.6 trillion won in September, reaching 1,198.9 trillion won. The increase was the smallest since March, when such loans rose by 0.5 trillion won.

Why did South Korean household loan growth slow in September?

Growth slowed amid tightened lending regulations and higher interest rates. The Bank of Korea had raised its benchmark rate to 3 percent through consecutive increases in July and August.

How did mortgage and other household loans change in South Korea in September?

Mortgage loans increased by 2.9 trillion won to 955.5 trillion won, while other household loans decreased by 2.3 trillion won to 242.6 trillion won. Across all financial institutions, household loans fell by 2.2 trillion won.

Household loans grow slowest in 7 months in Sept. on tighter rules, higher rates

Listen

Summary

Household loans extended by banks in South Korea increased by 0.6 trillion won in September, the smallest monthly gain in seven months, amid tighter lending rules and higher interest rates. Outstanding bank household loans reached 1,198.9 trillion won. Mortgage loans rose by 2.9 trillion won, while other household loans fell by 2.3 trillion won. Household loans across all financial institutions declined by 2.2 trillion won, the first monthly drop since December last year.

Key Facts

The Bank of Korea raised its benchmark interest rate to 3 percent through consecutive hikes in July and August, the first back-to-back increases since January 2023.
Outstanding mortgage loans totaled 955.5 trillion won after rising by 2.9 trillion won in September.
Other household loans declined by 2.3 trillion won to 242.6 trillion won.
The September increase in bank household loans was only 0.6 trillion won, compared with a 3.5 trillion-won increase in August.

By Yonhap

Published Oct 15, 2026 12:35 pm KST

Apartment complexes in Seoul, Oct. 4 / Yonhap

Household loans extended by banks increased by the smallest in seven months in September amid tightened lending regulations and higher interest rates, central bank data showed Thursday.

Outstanding household loans extended by banks stood at 1,198.9 trillion won ($895.5 billion) last month, up 0.6 trillion won from a month earlier, slowing from the previous month's 3.5 trillion-won rise, according to data from the Bank of Korea (BOK).

The September gain marks the smallest since March this year when such loans rose by 0.5 trillion won.

Outstanding mortgage loans increased by 2.9 trillion won on-month in September to 955.5 trillion won.

Other household loans, in contrast, fell by 2.3 trillion won to 242.6 trillion won.

The central bank 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.

Meanwhile, household loans by all financial institutions fell by 2.2 trillion won in September from a month earlier, the first on-month dip since December last year, when their loans to households declined 1.2 trillion won, according to separate data from the Financial Services Commission (FSC).

Explore More