Household loans across the entire financial sector rose 6.4 trillion won last month, returning to growth after 1 month. The increase in mortgage loans widened, and other loans including credit loans also switched to gains, pushing up the overall rise in household lending.

According to preliminary data on household loan trends for October 2026 released on Tuesday by the Financial Services Commission and the Financial Supervisory Service, household loans across the entire financial sector rose 6.4 trillion won last month. That compares with a 2.2 trillion won decline in September, marking a return to growth, and exceeded the 4.9 trillion won increase in the same month last year.

By loan type, mortgage loans increased by 4.0 trillion won, a larger rise than the previous month’s 3.2 trillion won. Mortgage loan growth at banks rose to 3.3 trillion won from 2.9 trillion won, while the increase at secondary financial institutions rose to 700 billion won from 300 billion won.

Other loans, including credit loans, shifted to an increase of 2.4 trillion won in October after falling 5.4 trillion won in September. The change was driven largely by credit loans, which turned to a 1.2 trillion won increase from a 2.9 trillion won decline.

By sector, household loans at banks rose 5.0 trillion won, sharply higher than the previous month’s 600 billion won increase. Growth in banks’ own mortgage loans expanded to 2.2 trillion won from 1.8 trillion won, while policy loans such as Didimdol and Bogeumjari rose to 1.2 trillion won from 1.1 trillion won. Other loans also turned positive, rising 1.7 trillion won after falling 2.3 trillion won.

Household loans at secondary financial institutions also returned to growth, rising 1.4 trillion won after falling 2.7 trillion won the previous month. Mutual finance rose 200 billion won, insurers rose 300 billion won, savings banks rose 200 billion won and specialized credit finance companies rose 800 billion won, with all major sectors switching to gains.

Financial authorities assessed that mortgage loan growth was maintained as execution of previously approved group loans expanded despite a decline in housing transaction volume in the Seoul metropolitan area. The increase in group loans widened to 2.4 trillion won in October from 1.7 trillion won in September. They also explained that rising volatility in credit loans boosted the overall increase in household lending.

Financial authorities said, "So far, household loans are being managed within the financial sector’s overall volume management target range," while urging that "loans should be managed so that they do not concentrate at specific times and cause a uniform 'loan cliff.'"