How much did household loans at South Korea’s five major banks increase in October, and what drove the rise?

The banks’ outstanding household loans grew by 2.77 trillion won to 783.6 trillion won. Mortgage lending added 1.7 trillion won, and credit lending increased by 669 billion won.

How did mortgage and credit loans at the five major South Korean banks change in October?

Mortgage loans rose for the seventh consecutive month, reaching 623.99 trillion won. Credit loans climbed to 108.89 trillion won, reversing the previous month’s 1.34 trillion-won decline.

Household loans again rise in Oct. despite tightened rules, higher rates

Q: Why did the Bank of Korea keep its benchmark interest rate at 3 percent in October 2026?

The Bank of Korea held the rate to give itself time to assess economic conditions amid prolonged tensions in the Middle East and robust exports. The decision followed rate increases at its July and August meetings.

Listen

Summary

Household loans at South Korea’s five major banks rose in October despite tight borrowing regulations and higher rates. The banks’ outstanding household loans totaled 783.6 trillion won at the end of the month, an increase of 2.77 trillion won from September. Mortgage loans rose for a seventh consecutive month, while credit loans also increased after falling in September. The Bank of Korea kept its benchmark rate at 3 percent last month after raising it in July and August.

Key Facts

The five lenders are KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank and NH Nonghyup Bank.
Mortgage loans increased by 1.7 trillion won to 623.99 trillion won in October.
Credit loans rose by 669 billion won to 108.89 trillion won after declining by 1.34 trillion won the previous month.
The Bank of Korea said its July and August rate hikes were preemptive action to curb mounting inflationary pressure and ensure macroeconomic stability.
The central bank cited prolonged tensions in the Middle East and robust exports when it kept the benchmark rate unchanged.

By Yonhap

Published Nov 2, 2026 3:41 pm KST

Apartments in Seongbuk district, Seoul, can be seen in this photograph taken Sunday. Yonhap

Household loans by major banks again rebounded in October from a month earlier despite tight borrowing regulations and higher rates, data showed Monday.

Outstanding household loans at five major lenders — KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank and NH Nonghyup Bank — stood at 783.6 trillion won ($584 billion) as of end-October, up 2.77 trillion won from the previous month, according to data compiled by the banks.

The rebound came a month after such loans fell for the first time in six months.

The rise in household loans by banks was mainly attributed to a rise in both mortgage and credit loans.

Mortgage loans rose for the seventh consecutive month in October, gaining 1.7 trillion won to 623.99 trillion won at the end of last month, according to the data.

Credit loans also advanced 669 billion won to 108.89 trillion won over the cited period, following the previous month's 1.34 trillion-won fall.

The Bank of Korea (BOK) kept its benchmark interest rate unchanged last month at 3 percent after two consecutive rate hikes to give the central bank time to assess economic conditions amid prolonged tensions in the Middle East and robust exports.

The rate freeze came after the BOK raised the benchmark rate in its July and August meetings, citing "preemptive action" to curb mounting inflationary pressure and ensure macroeconomic stability.

Explore More