Household loans across South Korea’s financial sector rose 6.2 trillion won in July from the previous month, marking a second straight slowdown in the pace of increase, the Financial Services Commission said. The rise was still larger than a year earlier and above past averages, regulators said, citing increased housing transactions in the Seoul metropolitan area. Authorities said they will maintain monitoring while adjusting aggregate lending targets to support end-user funding needs.

Post offices and internet banks in South Korea are moving to fill gaps left by shrinking bank branches, expanding access to loans for older people and local small merchants through nearby counters and mobile apps. The Financial Services Commission announced measures including a post office bank agency pilot, joint loans between regional banks and internet banks, and local government-linked mutual aid insurance. The plan also includes preferential loan terms and support to launch joint-loan products by 2027.