Did Strong Loan Regulations Work? Household Loans at Top 5 Banks Hit 4-Month Low

In June, the government's introduction of household loan regulations led to a slowdown in the growth of household loans at the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) last month.

As of July 2025, the outstanding balance of household loans at the five major banks (KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup) stood at 758.9734 trillion won. This represents an increase of approximately 4.1386 trillion won compared to June 2025. This figure is more than 2.6 trillion won lower than the previous month's increase of 6.7536 trillion won. Last month's increase is the lowest in the past four months. The increase, which was 1.7992 trillion won as of March 2025, rose to 4.5337 trillion won in April, 4.9964 trillion won in May, and 6.7536 trillion won in June, marking the highest level so far this year.

The slowdown in household loan growth was due to a decrease in mortgage loans. The outstanding balance of mortgage loans was 603.9702 trillion won, an increase of 4.5452 trillion won from the previous month. This is more than 1 trillion won lower than the previous month's increase of 5.7634 trillion won. Personal credit loans also decreased. The outstanding balance of personal credit loans was 103.9687 trillion won, a decrease of 433.4 billion won from the previous month. This contrasts with the increase of 1.0876 trillion won in June.

Loans to large corporations decreased, while loans to small and medium-sized enterprises increased. The outstanding balance of loans to large corporations was 164.9293 trillion won, a decrease of 722.2 billion won from the previous month. The outstanding balance of loans to small and medium-sized enterprises was 665.6859 trillion won, an increase of 1.5992 trillion won from the previous month.