Bank Household Loans Surge 4.3 Trillion Won…Mortgage Loans Hit Yearly High

Housing collateral loans (mortgages) saw their sharpest increase in a year, accelerating the rise in household loans across the banking sector. According to data from the Bank of Korea on the 9th, bank household loans increased by 7.6 trillion won in a single month, marking the largest gain since February 2024 (1 year and 10 months).

The balance of mortgage loans stood at 945 trillion won, up 4.3 trillion won from the previous month, recording the largest increase since June of last year. Other loans, including credit loans driven by stock investment, also increased, with the balance reaching 243.5 trillion won, up 3.3 trillion won.

Park Min-cheol, Deputy Head of the Bank of Korea's Market General Team, stated that housing prices in the Seoul and Gyeonggi regions have continued their upward trend, surpassing 10%, while transaction volumes have exceeded long-term averages. Park projected that housing-related loans would face continued upward pressure.