South Korea’s household loans rise at a slower pace in March

Mortgage loans grew, but other types of loans shrank during the month.

Household loans in South Korea’s financial sectors edged up in March 2025 to KRW0.4t ($280.27m), slower than the previous month, according to official data.

Whilst mortgage loans grew KRW3.4t ($2.38b), other types of loans shrank by KRW3t ($2.1t) compared to February 2025, data form the Financial Supervisory Service (FSS) showed.

This shows a stable trend in the pace of growth, the FSS assessed.

“However, the high volume of housing market transactions taking place prior to the reinstatement of housing market regulations in March this year is expected to be reflected in household debt statistics in upcoming months,” the regulator said, adding that the period after April will be “a crucial period for household debt management.”

Household loans in the banking sector grew at a slower rate by KRW1.4t ($980.98m) in March.

Policy-based loans also rose at a slower rate compared to the previous month, rising only KRW1.5t in March compared to the KRW2.6t in February.

Banks’ own mortgage loans increased at a rate of KRW0.7t ($490.48m).

(US$1 = KRW1,427.14; as of 14 April 2025, 12:37 PM; Google)