Household loans across all financial sectors increased by 3.76 trillion won last year. Mortgage loan (jumdamae) rose by 5.26 trillion won, but other loans such as unsecured credit loans fell by 1.5 trillion won.
According to the "2025 household loan trends (provisional)" released by the Financial Services Commission on the 14th, household loans across all financial sectors rose 2.3% from the end of the previous year. Mortgage loans increased by 5.26 trillion won, while other loans decreased by 1.5 trillion won. The increase in mortgage loans slightly slowed from the previous year (up 5.81 trillion won).
By sector, banks saw household loans rise by 3.27 trillion won, and secondary financial institutions saw an increase of 480 billion won. Bank mortgage loans increased by 3.24 trillion won last year, narrowing from the previous year (up 5.22 trillion won). Other loans rose by 300 billion won.
Among secondary financial institutions, household loans decreased across specialized credit finance (300 billion won), insurance (180 billion won), and savings banks (80 billion won). In contrast, mutual finance institutions increased by 1.05 trillion won. Household loans at Korean Federation of Community Credit Cooperatives (KFCC) rose by 530 billion won, driving the increase in mutual finance institutions' household loans.
In December last year, household loans across financial institutions fell by a total of 150 billion won, reversing from the previous month's increase (up 440 billion won). By loan type, mortgage loans increased by 210 billion won, while other loans decreased by 360 billion won.
The Financial Services Commission said the downtrend in the household debt-to-gross domestic product (GDP) ratio continues. The ratio fell from 98.7% in 2021 to 89.6% in 2024 and 89.0% last year (estimate).
The Financial Services Commission held a household debt review meeting that day and finalized a plan to raise the contribution rate to the Housing Finance Credit Guarantee Fund for large mortgage loans. The current contribution rate is set at 0.05% to 0.30%, divided by loan type such as fixed or variable rates. Starting in April, the base rate of 0.05% will apply to loans at or below the average loan amount; 0.25% will apply to amounts over the average up to twice the average; and 0.30% will apply to amounts exceeding twice the average.
From the banks' perspective, to prevent a decline in capital ratios and reduce the burden of contributions, they have little choice but to refrain from handling large mortgage loans.
Shin Jin-chang, Secretary-General of the Financial Services Commission (FSC), said, "As individual financial companies resume operations by resetting the total volume management targets for 2026, please take special care to ensure that the management stance does not loosen due to excessive competition," and emphasized, "To supply household loans stably without suspensions or concentrations at specific times, thorough management from the start of the year is necessary."