The outstanding balance of loans to households rose KRW7.8 trillion at the end of September 2021 (up 9.2% year-on-year) in all financial sectors. The balance of household loans increased KRW6.5 trillion in the banking sector and KRW1.4 trillion in the non-banking sector.

All financial sectors (y-o-y): +10.0% (Jul 2021) → +9.5% (Aug 2021) → +9.2% (Sep 2021)

By type, mortgage loans increased KRW6.7 trillion in September, growing at a slower rate compared with the previous month (up KRW7.1 trillion y-o-y). Other types of loans saw a rise of KRW1.1 trillion, falling from KRW1.5 trillion a month ago, due to a drop in both personal credit-based and credit card loans.

The balance of household loans grew at a slower rate in September, although the volume of growth remains high compared to pre-pandemic levels. The financial authorities are currently working on additional measures intended to curb the household debt growth. The authorities will ensure that the measures address the needs of lower income groups.