Mortgage demand lifts Korea’s household loans by $5.05b in June

Unsecured loans rose, whilst leasehold deposit loans declined.

South Korea’s household loans expanded “significantly” in June 2026, rising by $5.05b (KRW7.6t), following a jump in home mortgages and unsecured loans. 

A rise in housing transactions in the Seoul metropolitan area in April and May helped lift mortgage loans by $2.85b (KRW4.3t) during the month, according to data from the Bank of Korea (BOK).

Demand for intermediate payments financing for pre-sold housing units also rose, the central bank said.

South Korean banks’ household loans had earlier tripled in May compared to a month earlier on strong demand involving low- and mid-priced homes in Seoul.

These offset leasehold deposit loans’ declining by $464.14m (KRW0.7t) in June, extending the decreases recorded in April and May, the central bank said.

Other loans, in particular unsecured loans, rose by $2.19b (KRW3.3t) in June, extending the $2.45b (KRW3.7t) expansion in May. An increase in retail investment in stocks more than offset quarter-end write-offs and sales of non-performing loans (NPLs), the BOK said.

(US$1 = KRW 1,507.63; as of 13 July 2026)