Seoul: Household loans by major banks last month saw the most significant increase since October, driven by a rise in mortgage loans, financial data revealed on Monday. Outstanding household loans from five of the country's leading banks-KB Kookmin, Woori, Hana, Shinhan, and NH Nonghyup-amounted to 765.73 trillion won (US$520 billion) at the end of April. This figure represents an increase of 1.57 trillion won from the previous month.

According to Yonhap News Agency, the gain in April marks the sharpest rise in household loans since October, when they increased by 2.53 trillion won. In the preceding months, household loans experienced a slight decline in March after rising in February, and had decreased for two consecutive months in January and December.

Mortgage loans by banks reached 612.24 trillion won last month, rising by 1.91 trillion won compared to March. This marks the largest increase since a 3.7 trillion-won gain posted in August 2025. The data indicated that these loans had fallen by 387 billion won in March after an increase of 597 billion won in February, as the government has been actively implementing measures to cool the overheated housing market and manage household debt.

In a comprehensive policy package announced in October, the government designated 21 additional districts in Seoul as speculative zones, subjecting all 25 districts in the capital to stricter regulatory oversight. Additionally, lending rules were tightened, with the cap on mortgage loans reduced to as little as 200 million won, down from the previous limit of 600 million won set in June.