Non-Bank Housing Loans Surge by Over 10.5 Trillion Won as Banks Tighten Lending

[Economy 365]

As commercial banks tighten household lending, housing-related loans in the non-banking sector—including credit cooperatives and savings banks—have surged by more than 10.5 trillion won so far this year.

This is 1.8 times the increase recorded in the banking sector over the same period.

In contrast, the banking sector saw a modest increase of just 5.6 trillion won during the same timeframe.

In particular, the monthly increases in January, February, and March ranked first through third consecutively since statistics began.

The Bank of Korea explained that this was driven by a shift in loan demand—particularly for group loans—toward the non-banking sector due to commercial banks' household debt management at the beginning of the year.

However, as the government stepped up management of non-bank loans starting in April, the impact of executing previously approved group loans continued, but the growth has recently shown signs of a slowdown, with the expansion narrowing significantly entering May.

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