Seoul: Household loans by major banks fell for the first time in six months in September, as banks continue to strictly manage rapid borrowing, financial data showed Sunday. Outstanding household loans at five major lenders -- KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and NH NongHyup Bank -- stood at 781.39 trillion won (US$580.49 billion) as of Thursday, down 727.6 billion won from the end of August, according to the data compiled by the banks.

According to Yonhap News Agency, this marks the first time since March that the monthly outstanding figure fell from the previous month. Among these, outstanding mortgage loans stood at 620.5 trillion won as of Thursday, reflecting a decrease compared to 621.2 trillion won recorded at the end of August. The decline occurred despite the government's relaxation of the cap on household loans, as banks maintained their self-imposed loan restrictions, industry officials said.

The five major lenders have reportedly received additional quotas from financial authorities, increasing their annual target for household loan growth from 4.3 trillion won in 2025 to 7.1 trillion won this year. "Once loan supply resumes, driven by collective lending, mortgage growth is highly likely to regain momentum in the near future," an official from a local bank said.

Excluding policy loans, outstanding household loans at the five major banks maintained an uptrend, increasing by 108.7 billion won from the end of last month, according to the data.