Household credit surely to have topped 2,000 tln-won mark for 1st time

South Korea's household credit is on track to surpass the 2,000 trillion-won mark for the first time in the second quarter, according to industry sources. The surge in credit is attributed to increased home-backed loans and stock loans. By the end of March, household credit had reached 1,993 trillion won, marking a 14 trillion won increase from the previous year.

This represents the seventh consecutive quarterly rise, although the growth rate has slowed for the second straight quarter. Household credit encompasses credit purchases and loans granted to households by financial institutions. However, the outstanding household loans from all financial institutions are projected to have surged by at least 21 trillion won during the second quarter, indicating that outstanding household credit has likely crossed the 2,000 trillion-won mark.

Despite the government's efforts to cool the housing market and reduce household debt, demand for homes remains strong, and stock loans have been on the rise alongside a bullish stock market trend. For the entire year of 2025, household credit grew by 56.1 trillion won, or 2.9 percent, from the previous year, marking the fastest growth since 2021.