In October 2025, the outstanding balance of household loans across all financial sectors increased KRW4.8 trillion (preliminary), rising at a faster pace compared with the previous month (up KRW1.1 trillion).

(By Type)  Home-backed mortgage loans rose KRW3.2 trillion, growing at a slower pace compared with the previous month (up KRW3.5 trillion). Banks (up KRW2.5 trillion → up KRW2.1 trillion) saw the pace of growth decelerating, while nonbanks (up KRW1.1 trillion → up KRW1.1 trillion) maintained a similar pace of growth from the previous month.

Other types of loans edged back up KRW1.6 trillion from the decline of KRW2.4 trillion seen a month ago due mainly to the rise in credit loans (down KRW1.6 trillion → up KRW0.9 trillion).

(By Sector)  In October 2025, household loans in the banking sector rose KRW3.5 trillion, growing at a faster pace compared with the previous month (up KRW1.9 trillion). Banks’ own mortgage loan products (up KRW1.4 trillion → up KRW1.1 trillion) and policy-based loans (up KRW1.0 trillion → up KRW0.9 trillion) both saw the pace of growth decelerating from a month ago. Other types of loans (down KRW0.5 trillion → up KRW1.4 trillion) in the banking sector shifted back up from the decline seen in the previous month.

In the nonbanking sector, household loans grew KRW1.3 trillion, turning back up from the decline of KRW0.8 trillion seen a month ago. Insurance companies (down KRW0.3 trillion → up KRW0.1 trillion) and specialized credit finance businesses (down KRW1.1 trillion → up KRW0.2 trillion) saw the volume of household loans shifting back up. Mutual finance businesses (up KRW1.0 trillion → up KRW1.1 trillion) saw the pace of growth accelerating, while savings banks (down KRW0.5 trillion → down KRW0.2 trillion) saw a slower pace of decline compared with the previous month.

(Assessment)  In October 2025 (up KRW4.8 trillion), the pace of household loan growth decelerated from the same month a year ago (up KRW6.5 trillion) but accelerated from the previous month (up KRW1.1 trillion). This can be attributed to the growth of household loans in the nonbanking sectors (down KRW0.8 trillion → up KRW1.3 trillion) and the temporary rise in group mortgage lending for new apartment subscriptions.

Despite this accelerated pace of growth in October, its impact on the housing market is expected to be limited given that banks’ new mortgage loan issuance has been declining in recent months. However, the expanded level of housing transactions prior to the announcement of housing market stabilization plan on October 15 may still push up the pace of household loan growth for November and December this year. In addition, considering recent market situations, the volatility in household loan situation may expand at any time. Therefore, it remains crucial to continue to closely monitor the pace of household loan growth.

* Please refer to the attached PDF for details.