Household loans in the financial sector increased by more than 5 trillion won last month. The increase in housing transactions due to the partial lifting of the land transaction approval zone in Seoul, coupled with heightened stock market volatility leading to an increase in "debt investment," contributed to this rise.
According to the "April 2025 household loan trends (provisional)" data released by the Financial Services Commission and the Financial Supervisory Service on the 14th, household loans in the financial sector amounted to an increase of 5.3 trillion won last month.
Household loans in the financial sector surged by 4.2 trillion won in February. This marked the largest increase for February since 2021, when the figure was 9.7 trillion won, after four years. Even in March, when household loans typically decrease, there was still an increase of 700 billion won.
Mortgage loans increased by 4.8 trillion won in April alone. The increase in bank mortgage loans expanded from 2.5 trillion won the previous month to 3.7 trillion won, while the secondary financial sector saw a slight decrease from 1.2 trillion won to 1.1 trillion won. Additionally, credit loans rose by 1.2 trillion won compared to the previous month, and other loans turned upward. The financial authorities noted that the increase in credit loans was likely due to liquidity demands stemming from heightened stock market volatility in April.
When analyzed by sector, household loans from banks increased by 4.8 trillion won. Bank mortgages are categorized into bank products and policy loan products like the DiDimDol and BuTimMok, with the bank's own loans increasing by 1.9 trillion won, indicating a widening increase. Policy loans also rose by 1.9 trillion won.
Household loans from the secondary financial sector increased by 500 billion won. Savings banks saw an increase of 400 billion won, while insurance companies recorded an increase of 100 billion won; however, consumer finance companies experienced a decline of 100 billion won. Mutual finance saw a slight slowdown in its growth, increasing by 200 billion won compared to the previous month.
The financial authorities said, "Although household loans increased significantly in April compared to March, they remain within manageable limits considering the annual household loan management targets and other factors."
However, they noted, "There is a possibility that the growth of household loans may expand due to expectations of interest rate cuts, increased liquidity demand during May, the Family Month, and the effects of the phased implementation of the total debt service ratio (DSR)." They further stated, "We will actively promote measures for managing household debt, such as strengthening monthly, quarterly, and regional monitoring of household loans and inducing proactive self-management by financial companies."