{"id":19525,"date":"2026-05-17T06:48:10","date_gmt":"2026-05-17T06:48:10","guid":{"rendered":"https:\/\/www.europesays.com\/korea\/19525\/"},"modified":"2026-05-17T06:48:10","modified_gmt":"2026-05-17T06:48:10","slug":"korean-bank-household-loans-surge-again-as-home-transactions-recover","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/korea\/19525\/","title":{"rendered":"Korean Bank Household Loans Surge Again as Home Transactions Recover"},"content":{"rendered":"

\"PeoplePeople use bank ATMs installed in Seoul’s Yongsan district. News1<\/p>\n

South Korean banks’ household loans rebounded sharply in April after a brief slowdown the previous month, as housing transactions recovered from earlier weakness and apartment presale volumes increased.<\/p>\n

Outstanding household loans at banks stood at 1,174.9 trillion won as of the end of last month, up 2.1 trillion won from the previous month, according to the “April 2026 Financial Market Trends” report released Wednesday by the Bank of Korea (BOK). After the increase had narrowed to around 500 billion won in March, suggesting a stabilizing trend, the pace of growth expanded significantly again in just one month.<\/p>\n

The expansion was driven primarily by mortgage loans. Bank mortgage loans rose 2.7 trillion won in April from a month earlier, swinging to a sharp increase from a flat reading the previous month. “Demand for jeonse loans continued to slow, but mortgage loans turned to growth as nationwide apartment transactions recovered since the start of the year and demand for interim payments grew amid expanded presale supply,” a BOK official said.<\/p>\n

Nationwide apartment transactions have shown a clear recovery, rising from 41,000 units in February to 49,000 units in March. By contrast, other loans, which include credit loans and overdraft accounts, swung to a decrease of 600 billion won last month from an increase of 500 billion won the previous month, as individuals used proceeds from net stock sales to repay loans.<\/p>\n

Corporate loans also expanded, with the increase widening to 10.7 trillion won last month from 7.8 trillion won the previous month.<\/p>\n

Loans to small and medium-sized enterprises (SMEs) grew by 5.7 trillion won, supported by aggressive lending by banks and demand for value-added tax payment funds. The previous month’s increase was 4.5 trillion won.<\/p>\n

Loans to large corporations also rose by 5 trillion won. The increase reflected the re-execution of loans that had been temporarily repaid at the end of the previous quarter, combined with funding demand for dividend payments and corporate bond redemptions.<\/p>\n

By contrast, the corporate bond market posted net redemptions as interest rate volatility widened. As companies shifted to bank loans or commercial paper (CP) instead of issuing bonds, corporate bonds recorded net redemptions of 3.9 trillion won last month.<\/p>\n","protected":false},"excerpt":{"rendered":"People use bank ATMs installed in Seoul’s Yongsan district. News1 South Korean banks’ household loans rebounded sharply in…\n","protected":false},"author":2,"featured_media":19526,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[456],"tags":[13873,845,846,13876,13874,13871,13875,8865,13872],"class_list":{"0":"post-19525","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-bank-of-korea","8":"tag-apartment-transactions","9":"tag-bank-of-korea","10":"tag-bok","11":"tag-corporate-bond-redemption","12":"tag-corporate-loans","13":"tag-household-loans","14":"tag-jeonse-loans","15":"tag-korea-housing-market","16":"tag-mortgage-loans"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/19525","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/comments?post=19525"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/19525\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media\/19526"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media?parent=19525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/categories?post=19525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/tags?post=19525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}