Seoul: Banks in South Korea are expected to slightly ease lending standards in the first quarter amid authorities' continued efforts to rein in household lending, a central bank survey showed Monday.

According to Yonhap News Agency, the index measuring banks' lending attitudes stood at 8 for the January-March period, up sharply from minus 21 in the fourth quarter of 2025. A reading below zero indicates that more lenders plan to tighten, rather than ease, credit standards. The first-quarter figure marked the first time the index has registered a reading above zero since the first quarter of 2025.

By sector, the index for home mortgage lending came in at 6 for the first quarter, compared with minus 44 in the previous quarter. The indexes for loans to large companies and small- and mid-sized enterprises (SMEs) stood at 6 and 11, respectively. "Demand for housing-related loans is expected to rise slightly, driven by home purchases and demand for lease financing," a BOK official said. "For corporate loans, banks are likely to maintain an accommodative lending stance, though credit risks are expected to persist, particularly among SMEs."

The government has implemented a series of regulations on home purchases in the greater Seoul regions and borrowing as part of efforts to cool the overheated real estate market and manage household debt.