Home > Business > Economy

Household loans continue to increase in June on heated housing, stock markets

Published: 15 Jun. 2025, 16:52

This file photo taken on May 21 shows an advertisement for home-backed loans at a bank in central Seoul. [YONHAP]

Household loans extended by five major banks in Korea continue to rise, data showed Sunday, amid a boost in local stock markets and signs of overheating in the housing market.

Household loans extended by the five major commercial banks in the country, including KB Koomin, Shinhan and KEB Hana, gained nearly 2 trillion won ($1.46 billion) since the start of this month, reaching 750.08 trillion won as of Thursday, according to the data.

The banks have reported a continued increase in new household loans from a 1.8 trillion won on-month gain in March to 4.5 trillion won in April and 4.99 trillion won last month.

In detail, home equity loans reached 595.1 trillion won as of Thursday, up 1.48 trillion won from the end of May.

Unsecured loans came to 103.9 trillion won, increasing by 600 billion won over the same period to reach the highest level since November.

Market watchers attributed the recent rise in household loans to strong demand for investment in the real estate and financial markets.

The five major banks extended more than 3 trillion won in fresh home-backed loans for house purchases in the first 12 days of this month, according to data.

A big portion of the unsecured loans is assumed to be used for stock and cryptocurrency purchases, with investors' deposits at securities firms having reached 62.9 trillion won as of Thursday, the highest in more than three years, according to data compiled by the Korea Financial Investment Association.

The benchmark Kospi had risen for seven consecutive sessions until Thursday, surpassing the 2,900-point mark for the first time since Jan. 14, 2022.

Yonhap