Regulatory Alerts2025-01-15 | 83859Household Loans, December 2024
The Financial Services Commission released preliminary data showing that household loans across all financial sectors increased by KRW41.6 trillion in 2024, with mortgage loans driving growth in the banking sector while nonbanking sectors saw slower declines. In December 2024, total household loan balances rose by KRW2.0 trillion, a deceleration from the previous month, as mortgage growth slowed due to seasonal factors and expectations of future rate cuts. Financial authorities plan to maintain self-management principles in 2025 to contain household debt growth within annual economic growth levels, citing stable debt-to-GDP ratios despite recent regulatory tightening.
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