The expansion price of whole family debt within the third quarter of this yr slowed as a result of authorities’s actual property measures.
In line with the Q3 2025 Family Credit score (Provisional) statistics launched by the Financial institution of Korea on Nov. 18, family credit score excellent as of the top of September totaled 1,968.3 trillion received. Family credit score refers to ‘complete family debt,’ which incorporates loans acquired by households from banks, insurance coverage firms, lending firms, and public monetary establishments, plus pre-settlement card utilization quantities (gross sales credit score). This represents a rise of 14.9 trillion received from the top of the second quarter (1,953.3 trillion received) and marks the sixth consecutive quarter of development since Q2 2024.
Nonetheless, the expansion price decreased in comparison with the earlier quarter, Q2 (+25.1 trillion received). In Q2 of this yr, family debt development reached its largest scale since Q3 2021 (+35 trillion received) on account of a surge in asset investments in housing and shares, however this development slowed in Q3.
Taking a look at family loans solely, excluding gross sales credit score (card funds) from family credit score, the Q3-end stability was 1,845 trillion received, a rise of 12 trillion received from the top of the earlier quarter (1,883.1 trillion received). The expansion quantity is about half the extent of the earlier quarter (+23.6 trillion received).
Amongst family loans, housing mortgage loans totaled 1,159.6 trillion received, a rise of 11.6 trillion received. The expansion price slowed in comparison with the earlier quarter (+14.4 trillion received). This discount in development is analyzed to be the results of the federal government’s June 27 measures that strengthened actual property lending rules. Different loans (stability of 685.4 trillion received), together with credit score loans and securities firm credit score extensions, elevated by 300 billion received. This additionally represents a big lower in development in comparison with the earlier quarter (+9.2 trillion received).
Kim Min-su, head of the Financial institution of Korea’s Monetary Statistics Workforce, defined, “As a result of June 27 measures, the expansion of housing mortgage loans decreased, and as credit score mortgage limits have been lowered to inside debtors’ annual revenue, the general family mortgage development additionally decreased in comparison with Q2.” He added, “Family debt development slowed to 0.8% in Q3, and whereas Q3 nominal GDP development charges are usually not but out there, based mostly on actual GDP development charges (1.7%), there’s a excessive chance that the family debt-to-nominal GDP ratio will even decline in Q3.”
By lending channel, family loans from deposit banks elevated by 10.1 trillion received over three months to document 1,003.8 trillion received, breaking by way of the 1,000 trillion received mark. Nonetheless, the expansion price decreased in comparison with the earlier quarter (+19.3 trillion received). Whereas housing mortgage loans elevated by 10.9 trillion received, different loans decreased by 800 billion received.
Family loans from non-bank deposit-taking establishments similar to mutual finance, mutual financial savings banks, and credit score unions (stability of 316.2 trillion received) elevated by 2 trillion received. The expansion price slowed in comparison with the earlier quarter (+3 trillion received).
Gross sales credit score stability amongst Q3 family credit score totaled 123.3 trillion received. This represents a rise of three trillion received from the top of the earlier quarter, primarily centered on specialised credit score firms.
