Seoul: Household credit in South Korea is projected to have exceeded the 2,000 trillion-won (US$1.41 trillion) mark in the second quarter, primarily due to the surge in home-backed loans and stock loans, as highlighted by industry sources on Sunday.

According to Yonhap News Agency, household credit reached a record high of 1,993 trillion won at the end of March, reflecting an increase of 14 trillion won from the end of the previous year. This marks the seventh consecutive quarterly increase in household credit, although the growth rate has decelerated for the second consecutive quarter.

Household credit encompasses credit purchases and loans provided to households by financial institutions. The outstanding household loans by all financial institutions are estimated to have increased by at least 21 trillion won during the second quarter, indicating that outstanding household credit likely surpassed the 2,000 trillion-won threshold.

Despite governmental efforts to cool the overheated housing market and control household debt, demand for homes remains strong. Additionally, stock loans have been increasing in line with a bullish stock market. For the entire year of 2025, household credit rose by 56.1 trillion won, or 2.9 percent, from the previous year, marking the fastest growth rate since 2021, as per the data provided.