Household Loans, August 2026

In August 2026, the outstanding balance of household loans across all financial sectors increased KRW2.6 trillion (preliminary), growing at a slower pace compared with the previous month (up KRW6.4 trillion).

(By Type)  Home-backed mortgage loans increased KRW4.3 trillion, which showed a slowing down from the previous month (up KRW3.6 trillion). Banks (up KRW3.5 trillion → up KRW4.0 trillion) and nonbanks (up KRW0.1 trillion → up KRW0.3 trillion) both saw the pace of growth accelerating.

Other types of loans edged down KRW1.7 trillion, shifting back down from a growth of KRW2.8 trillion in the previous month with credit loans falling KRW0.5 trillion from an increase of KRW2.1 trillion a month ago.

(By Sector)  In August 2026, household loans in the banking sector went up KRW3.4 trillion, growing at a slower pace from the previous month (up KRW5.5 trillion). Banks’ own mortgage loans (up KRW2.5 trillion → up KRW2.9 trillion) and policy-based mortgage loans (up KRW1.0 trillion → up KRW1.1 trillion) both edged up at faster rates, while other types of loans shifted back down from the previous month’s growth (up KRW2.0 trillion → down KRW0.6 trillion).

The nonbanking sector saw household loans declining KRW0.8 trillion, turning back lower from a growth of KRW0.9 trillion in the previous month. Mutual finance businesses (down KRW0.6 trillion → down KRW0.5 trillion) saw the pace of decline slowing down, while savings banks (up KRW0.5 trillion → up KRW0.3 trillion) saw the pace of growth decelerating. Insurance businesses (up KRW0.7 trillion → down KRW0.3 trillion) and specialized credit finance businesses (up KRW0.3 trillion → down KRW0.3 trillion) saw household loans shifting back down from increases seen in the previous month.