Household credit rises 1.3 percent to 2,019.8 trillion won in Q2
Total South Korean household credit increased by 25.9 trillion won in the second quarter of 2026 to stand at 2,019.8 trillion won. Data from the Bank of Korea shows household loans drove the 1.3 percent quarterly expansion.
Commercial banks lead credit expansion
Household loans accounted for the bulk of the second-quarter expansion, rising by 24.9 trillion won to reach 1,891.3 trillion won as of end-June 2026.
Commercial and specialized banks spearheaded the increase, with lending rebounding by 13.3 trillion won after a 0.2 trillion won decline in the previous quarter.
Non-bank depository corporations expanded lending by 3.1 trillion won, moderating from an 8.2 trillion won rise in the first quarter, while other financial corporations added 8.6 trillion won.
Housing-related loans across all institutions grew by 12.2 trillion won to 1,190.8 trillion won, whereas other loans expanded by 12.8 trillion won to reach 700.5 trillion won.
Modest gain in merchandise credit
Merchandise credits grew at a slower pace in the second quarter, rising by 0.9 trillion won to a total outstanding balance of 128.5 trillion won.
This follows a 1.4 trillion won expansion in the first quarter of 2026.
Credit-specialized financial companies generated the growth, adding 1.0 trillion won to bring their outstanding total to 127.1 trillion won.
In contrast, credit extended by merchandise companies, such as department stores and automobile firms, edged down by 0.1 trillion won during the period to stand at 1.4 trillion won.
A rebound that demands caution
The sharp rebound in commercial bank lending shows household debt remains resilient.
While consumer spending via merchandise credit slowed, expanding mortgage demand reinforces structural risk.
Policymakers cannot afford complacency as total borrowing surpasses two quadrillion won.
Source: Household Credits in Q2 2026
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