South Korean bank household loans continued their decline for a third consecutive month in February, falling to 1,172.3 trillion won ($799.11 billion) amid ongoing government lending curbs, though mortgages edged up slightly due to moving demand ahead of the new school year.
Bank of Korea data released March 11 showed outstanding household loans from banks at 1,172.3 trillion won at end-February, down 300 billion won from January's 1,172.7 trillion won level. This extends the downtrend from December, reflecting tightened loan regulations to cool surging housing prices in Seoul and the greater metropolitan area. President Lee Jae Myung has emphasized stabilizing the real estate market, warning multiple homeowners.
Mortgage loans rose 400 billion won to 934.9 trillion won—the first monthly gain since November—rebounding from January's 600 billion-won drop, driven by home transactions and seasonal moving demand, per BOK's Park Min-cheol.
Unsecured and other household loans fell 700 billion won, extending January's 400 billion-won decline. Park noted modest drops amid holiday bonuses and rising stock investment demand.
Corporate loans grew 9.6 trillion won to 1,379.2 trillion won. From all financial institutions, household loans rose 2.9 trillion won (mortgages +4.2 trillion won), accelerating from January.
