South Korea's household lending hits new record high in Q1 2026

Seoul (ANTARA) – The Bank of Korea (BOK) said that South Korea’s household lending reached a new record high in the first quarter (Q1) 2026 due to strong demand for mortgage loans. The BOK noted that the value of household lending, referring to debt households owe to banks and other lenders beyond purchases on credit, reached 1,993.1 trillion won (1 won = Rp11.8) or about $1.33 trillion (1 USD = Rp17,666) at end-March 2026, up 14 trillion won from the previous quarter. This marked the largest amount since the data series began in 2002, and sustained eight consecutive quarters of increases since Q2 2024. The record was driven by significant demand for mortgage loans. The BOK kept the policy rate at 2.50 percent after cuts of 25 basis points in February and May 2025 as well as October and November 2024. Excluding purchases on credit, the value of household debt in Korea rose 12.9 trillion won from the three months prior to 1,865.8 trillion won at end-March 2026. Mortgage lending to households rose by 8.1 trillion won in the January-March 2026 quarter, faster than the 7.2 trillion won increase recorded in the previous quarter. Other household lending, such as consumer loans, rose by 4.8 trillion won. The value of purchases on credit added 1.1 trillion won in the quarter.