South Korea's total household debt set another record high in the fourth quarter of last year, nearing 2,000 trillion won. The increase in mortgage loans slowed from the previous quarter, but other loans including credit loans expanded on factors such as stock investment demand.

The Bank of Korea said on Thursday that the outstanding balance of household credit stood at 1,978.8 trillion won as of the end of December, according to its preliminary household credit data for the fourth quarter of 2025.

That was up 14.0 trillion won from 1,964.8 trillion won at end-September and marked the largest level since the statistics were first published for the fourth quarter of 2002.

The annual increase last year was 56.1 trillion won, for a growth rate of 2.9 percent. It was the biggest rise since a 132.8 trillion won increase in 2021.

Household credit refers to comprehensive household debt, adding sales credit, or card spending not yet settled, to loans households receive from banks, insurers, lenders and public financial institutions.

South Korea's household credit has risen for seven consecutive quarters from the second quarter of 2024 through the fourth quarter of last year. The fourth-quarter increase of 14.0 trillion won, however, narrowed from 14.8 trillion won in the third quarter.

Looking only at household loans excluding sales credit, the outstanding balance at end-fourth quarter was 1,852.7 trillion won, up 11.1 trillion won from the previous quarter-end. The increase was smaller than the 11.9 trillion won rise in the third quarter.

Within household loans, outstanding mortgage loans rose 7.3 trillion won to 1,170.7 trillion won, while other loans such as credit loans increased 3.8 trillion won to 682.1 trillion won.

By lending channel, household loans at deposit banks stood at 1,009.8 trillion won, up 6.0 trillion won over three months. Mortgage loans rose 4.8 trillion won, and other loans, which had fallen 800.0 billion won in the third quarter, shifted to a 1.2 trillion won increase in the fourth quarter.

Household loans at non-bank depository institutions such as mutual savings banks and credit unions totalled 316.8 trillion won, up 4.1 trillion won. Mortgage loans at these institutions jumped 6.5 trillion won, while other loans such as credit loans fell 2.4 trillion won.

Household loans at other financial institutions including insurers, securities firms and asset-backed special purpose companies came to 526.1 trillion won, up 1.1 trillion won. Credit provision by other financial intermediaries such as securities firms surged 2.9 trillion won.

Hye-young Lee (이혜영), head of the Bank of Korea's financial statistics team, said mortgage loan growth in the fourth quarter narrowed due to factors including the government's measures to stabilise the housing market. But other loans turned to an increase as credit loans at deposit banks and policy loans secured by insurance policies at insurers rose and the decline in card loans at specialised credit finance companies eased.

She added that the rise in credit provision by securities firms is estimated to be related to stock investment demand.