The trends in housing-related loans and credit loans are diverging significantly. While credit loans have shifted to a downward trend due to stricter management of household loans by financial institutions and increased volatility in the stock market, mortgage loans have seen a rise as collective loans are being supported to bolster housing supply.
According to the Financial Services Commission's report on household loan trends for August 2026, total household loans across all financial sectors increased by 2.6 trillion won last month, a substantial decrease from the previous month's increase of 6.4 trillion won.
By sector, household loans from banks rose by 3.4 trillion won, a significant reduction from the previous month's increase of 5.5 trillion won. In contrast, the second financial sector saw a decrease of 800 billion won compared to the previous month, marking a shift to a downward trend.
However, the increase in mortgage loans has expanded. In August, mortgage loans increased by 4.3 trillion won, up 700 billion won from the previous month's increase of 3.6 trillion won. The increase in mortgage loans from banks rose from 3.5 trillion won to 4 trillion won, while the second financial sector's increase grew from 1 trillion won to 3 trillion won.
The growth in mortgage loans is attributed to an increase in housing transactions and a rise in the number of housing completions in July and August, leading to more execution of balance loans. According to the Ministry of Land, Infrastructure and Transport, the number of housing completions nationwide doubled from 16,000 units in June to 32,000 units in July.
As part of the August 13 measures to support housing supply, collective loans for moving expenses, interim payments, and balance payments are being managed separately, which has also led to an increase in collective loans. The increase in collective loans from banks rose from 900 billion won in July to 1.2 trillion won in August. In contrast, general mortgage loans decreased from 2.1 trillion won to 2 trillion won during the same period. The rise in collective loans has driven the increase in mortgage loans from banks.
On the other hand, other loans decreased by 1.7 trillion won compared to the previous month, marking a shift to a downward trend for the first time in four months since April. Among these, credit loans saw a significant drop from an increase of 2.1 trillion won in July to a decrease of 500 billion won last month. A representative from a major bank stated, "Financial institutions are independently limiting credit loan limits, and with recent stock market volatility, there is a trend of investors withdrawing funds that had been directed to the stock market."
Shin Jin-chang, the Secretary General of the Financial Services Commission, noted, "The trend of increasing mortgage loans may continue due to seasonal funding demands during the fall moving season and the separate management of collective loans as per the August 13 measures," urging financial institutions to maintain their management of household loans.
* This article has been translated by AI.
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