Household loans across South Korea’s financial sector rose 9.3 trillion won in May, sharply above April’s increase and a year earlier. Mortgage lending growth slowed, but other loans, including credit loans, swung to an increase and drove the overall rise. Regulators held a debt monitoring meeting and plan weekly checks on firms that miss management targets. Banks will pursue voluntary measures such as cutting new credit loan limits for high earners.

A stock market rally is fuelling renewed debt-backed investing by retail investors, pushing up overdraft credit line balances at South Korea’s major banks. Balances at the five biggest lenders rose from 39 trillion won at end-April to above 41 trillion won in May, the highest in about 3 years and 4 months. Banks see profit opportunities among high-credit borrowers but face potential pressure from regulators if household lending keeps rising.