In April 2025, the outstanding balance of household loans across all financial sectors rose KRW5.3 trillion (preliminary), growing at a faster pace compared with the previous month (up KRW0.7 trillion).

(By Type)  Home-backed mortgage loans increased KRW4.8 trillion, rising at a faster pace compared with a month ago (up KRW3.7 trillion). The pace of mortgage loan growth accelerated in the banking sector (up KRW2.5 trillion → up KRW3.7 trillion), while slowing down somewhat in the nonbanking sector (up KRW1.2 trillion → up KRW1.1 trillion).

Other types of loans increased KRW0.5 trillion, shifting back up from the decline of KRW3.0 trillion in the previous month, as credit loans edged up KRW1.2 trillion from a month ago (down KRW1.2 trillion).

(By Sector)  In April, household loans in the banking sector rose at a faster pace compared with the previous month (up KRW1.7 trillion → up KRW4.8 trillion). Banks’ own mortgage loans grew at an expanded level (up KRW0.7 trillion → up KRW1.9 trillion) and policy-based loans also rose at a slightly faster pace (up KRW1.8 trillion → up KRW1.9 trillion). Other types of loans in the banking sector turned back up from the decline in the previous month (down KRW0.9 trillion → up KRW1.0 trillion) due to a rise in credit loans.

In the nonbanking sector, household loans edged up KRW0.5 trillion, rising from the decline of KRW0.9 trillion a month ago. Savings banks (down KRW0.2 trillion → up KRW0.4 trillion) and insurance companies (down KRW0.2 trillion → up KRW0.1 trillion) saw household loans shifting back up, while specialized credit finance businesses (down KRW0.9 trillion → down KRW0.1 trillion) saw a slower pace of decline. In the mutual finance sector (up KRW0.4 trillion → up KRW0.2 trillion), the pace of growth slowed down somewhat compared with the previous month.

(Assessment)  The expanded pace of household loan growth in April can be attributable to the rise in housing transactions taking place between February and March, and the rise in credit loans can be seen in light of expanded stock market volatility in April.

Although the pace of household loan growth accelerated in April compared with the previous month, it still remains within a manageable level considering the annual household loan management targets. However, amid expectation for interest rate cuts, seasonal demand increase in the month of May, and the scheduled implementation of the third-stage stressed debt service ratio (DSR) rules from July 1, it is possible that the pace of household loan growth may expand further.

Therefore, the financial authorities will continue to stay vigilant and ensure close coordination among related organizations to strengthen monitoring on a monthly, quarterly, and regional basis, while continuing to encourage financial companies to take proactive steps for effective management of household debt on a voluntary basis.

* Please refer to the attached PDF for details.