Household Loans, January 2026

In January 2026, the outstanding balance of household loans across all financial sectors increased KRW1.4 trillion (preliminary), turning back up from the decline of KRW1.2 trillion in the previous month.

(By Type) Home-backed mortgage loans increased KRW3.0 trillion, growing at a faster rate compared with the previous month (up KRW2.3 trillion). Mortgage loans dropped at a slightly faster rate in the banking sector (down KRW0.5 trillion → down KRW0.6 trillion), but rose at a faster rate in the nonbanking sector (up KRW2.8 trillion → up KRW3.6 trillion).

Other types of loans edged down KRW1.7 trillion, declining at a slower rate compared with the previous month (down KRW3.6 trillion), as credit loans dropped at a slower pace (down KRW2.5 trillion → down KRW1.0 trillion).

(By Sector) In January 2026, household loans in the banking sector saw a drop of KRW1.0 trillion, declining at a slower rate compared with the previous month (down KRW2.0 trillion). Banks' own mortgage loan products fell at a faster rate (down KRW1.4 trillion → down KRW1.7 trillion), while policy-based mortgage loans rose at a slightly faster rate (up KRW0.9 trillion → up KRW1.1 trillion). Other types of loans including credit loans declined at a slower rate (down KRW1.5 trillion → down KRW0.4 trillion).

In the nonbanking sector, household loans rose KRW2.4 trillion, growing at an expanded level from a month ago (up KRW0.8 trillion). Mutual finance businesses (up KRW2.0 trillion → up KRW2.3 trillion)saw household loans edging up more rapidly, while insurance companies (down KRW0.02 trillion → down KRW0.2 trillion)saw household loans declining at a faster rate. Specialized credit finance businesses (down KRW0.8 trillion → down KRW0.02 trillion)saw household loans declining at a slower rate, while savings banks (down KRW0.5 trillion → up KRW0.3 trillion)saw household loans shifting back up from a decline seen in the previous month.

(Assessment) In January 2026, the outstanding balance of household loans edged up KRW1.4 trillion led by an expanded level of growth seen in the nonbanking sector (up KRW0.8 trillion → up KRW2.4 trillion), even though there is a continuing trend of decline seen in the banking sector (down KRW2.0 trillion → down KRW1.0 trillion). The increase is mainly attributable to the early-year effect where financial companies begin to resume their loan operations and the rise of group lending in the nonbanking sector.

With the spring moving season around the corner, it is possible to see a further expansion in household loans in February. Thus, it remains necessary to strengthen monitoring over household loan trends and tighten the management of household loans.

While continuing to tightly manage the volume of household loans being handled, financial authorities will work to make sure that there is no excessive shortage of liquidity for vulnerable groups, such as young adults and borrowers with mid-to-low credit background.

* Please refer to the attached PDF for details.