The outstanding balance of household loans in all financial sectors rose KRW9.1 trillion from the previous month at the end of March 2021 (up 8.4% year-on-year). The household loan balance increased KRW6.5 trillion in the banking sector and KRW2.6 trillion in the non-banking sector.

All financial sectors (y-o-y): +8.5% (Jan 2021) → +8.5% (Feb 2021) → +8.4% (Mar 2021)

By type, mortgage loans increased KRW6.5 trillion in March, growing at a slower rate compared with the previous month (up KRW7.8 trillion y-o-y). Mortgage lending and jeonse loans declined due to a slowdown in housing market transactions. Other types of loans grew KRW2.6 trillion, declining from KRW3.9 trillion a year ago. Credit-based lending fell significantly compared to the end of previous year as lenders tightened control over credit risks and the demand for stock investment subsided.

The government will closely monitor trends in household loans and work on policies to induce a soft-landing of the household debt-related risks.

* Please refer to the attached PDF for details.