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Average household debt per borrower reaches record high in 2025 despite shrinking borrower base

Published: 12 Jan. 2026, 16:15 Updated: 12 Jan. 2026, 18:52

A sign advertising loan products is displayed at a bank in Seoul on Jan. 12. [NEWS1]

The average amount of household debt per borrower in Korea reached a record high last year as total lending continued to grow despite a shrinking borrower base, data showed on Monday.

The average household loan balance per borrower reached 97.21 million won ($66,200) at the end of the third quarter in 2025, the highest since the Bank of Korea (BOK) began compiling such data in 2012, according to data submitted by the central bank to Rep. Park Sung-hoon, a member of the National Assembly's Strategy and Finance Committee.

The figure has risen for nine consecutive quarters since the second quarter of 2023, when it stood at 93.32 million won, and increased by more than 2 million won from a year earlier.

The number of borrowers decreased over the same period. Household loan borrowers totaled 19.68 million at the end of the third quarter of last year, down from the end of the fourth quarter of 2024 and the lowest level since the fourth quarter of 2020.

Even as the borrower base shrank, overall household debt continued to grow. Outstanding household loans rose to 1.91 quadrillion won at the end of the third quarter of 2025 from 1.85 quadrillion won at the end of the first quarter of 2024, extending the growth streak to six consecutive quarters.

By age group, borrowers in their 40s carried the largest average bank loan balances at 114.67 million won per person, reflecting the heavy concentration of mortgage borrowing among middle-income households. Borrowers aged 60 and older held lower average bank loans at 76.75 million won, but their reliance on nonbank lenders left them more vulnerable to credit risk.

A pedestrian walks by ATMs in Seoul on Jan. 4. [YONHAP]

New lending has also picked up again. The average amount of newly issued household loans per borrower reached 38.52 million won in the third quarter of last year, up 260,000 won from the previous quarter, according to the BOK. The figure had fallen for two straight quarters before rebounding in the second quarter of 2025 and extending gains into the third.

Rising property prices have added to the pressure. Based on weekly data, Seoul apartment prices rose a cumulative 8.71 percent last year, the steepest increase since the Korea Real Estate Board began compiling the figures. As home prices climbed, borrowers took on larger mortgages, pushing the average mortgage balance per borrower to a record 227.07 million won in the third quarter of 2025.

Analysts warn that a sharper economic slowdown could concentrate risks among highly leveraged households.

“The growing household debt burden is weighing on consumption and the self-employed sector,” People Power Party Rep. Park said. “What we need is structural management, not short-term regulation.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM WON [[email protected]]