Increase Significantly Slows Compared to Previous Month (+4.7 Trillion Won)
Impact of June Regulations Begins in Earnest After a Time Lag
Lee Eokwon, Chairman of the Financial Services Commission, attended the joint briefing on housing market stabilization measures held at the Government Seoul Office in Jongno, Seoul, on the 15th, and announced real estate measures. The announcement was attended by Koo Yoonchul, Deputy Prime Minister and Minister of Economy and Finance, Kim Yoonduk, Minister of Land, Infrastructure and Transport, Yoon Changryul, Director of the Office for Government Policy Coordination, and Lim Kwanghyung, Commissioner of the National Tax Service. 2025.10.15 Photo by Jo Yongjun
In September of this year, household loans across all financial sectors increased by 1.1 trillion won compared to the previous month, marking a significant decrease from the previous month's increase of 4.7 trillion won. This is seen as evidence that the effects of the June 27 loan regulations have begun to materialize in earnest after a time lag of about three months.
The Financial Services Commission announced on the 16th that it held a meeting at the Government Seoul Office with relevant ministries to review household debt and discuss future response measures.
Household loans across all financial sectors increased by 1.1 trillion won compared to the previous month, a significant decrease from the previous month's increase of 4.7 trillion won. The rate of increase slowed in both the banking sector and the secondary financial sector.
Other loans also decreased by 2.4 trillion won, which is a larger decline compared to the previous month's decrease of 400 billion won. This is primarily due to a greater reduction in credit loans, which recorded a decrease of 1.6 trillion won compared to the previous month's decrease of 300 billion won.
By sector, household loans from banks increased by 2 trillion won, but this was a smaller increase than the previous month's 4.1 trillion won. Specifically, the increase in the banks' own mortgage loans was 1.4 trillion won, down from 2.7 trillion won in the previous month.
Policy loans maintained a similar increase to the previous month, at 1.1 trillion won. Other loans turned to a decline of 500 billion won, compared to an increase of 300 billion won in the previous month.
Household loans in the secondary financial sector decreased by 900 billion won, shifting to a decline from the previous month's increase of 600 billion won. The rate of increase in mutual finance also slowed (from 1.2 trillion won to 900 billion won), and savings banks shifted from an increase of 30 billion won to a decrease of 50 billion won.
The Financial Services Commission analyzed that the decrease in new mortgage loan growth was due to the delayed but now evident impact of the June 27 measures, such as the decline in housing transactions.
The Financial Services Commission emphasized, "Recently, the real estate market has shown signs of overheating in some areas of the Seoul metropolitan area, with a partial increase in housing transactions. As there is concern that the growth of household loans may expand again after a time lag, more proactive management of household loans is required."
In particular, the commission stated, "Through on-site inspections of the October 15 'Loan Demand Management Plan,' we will intensively monitor the status of loans and trends at frontline branches, while also conducting thorough investigations into illegal and irregular transactions. We will do our utmost to ensure that these measures take root in the market as quickly as possible."
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