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Household loan growth by four major banks exceeds annual target by 30%

Published: 23 Nov. 2025, 21:41

Apartment buildings in Seoul are seen from Mount Namsan on Nov. 17. [YONHAP]

Household loans newly extended by the country's four major banks have exceeded their annual growth targets by more than 30 percent, according to industry sources on Sunday, raising concerns about a potential lending freeze before the end of the year.

The nation's top four lenders — KB Kookmin, Shinhan, Hana and Woori — reported household loan growth of 7.89 trillion won ($5.36 billion) this year, excluding policy loans, as of Friday. The amount is 32.7 percent higher than their combined growth target of 5.95 trillion won, submitted to financial authorities earlier this year.

In June, the Financial Services Commission asked all local banks to reduce their aggregate household loan growth targets to 50 percent of their original levels. In response, the banks submitted revised and lower targets.

Despite the adjustments, all four major banks have already surpassed their individual targets, with the rate ranging from 9.3 percent to 59.5 percent.

Expanding the scope to the five largest banks, only NH Nonghyup remains below its target, reporting 1.8 trillion won in household loan growth, compared to its 2.12 trillion-won target.

As a result, banks have begun emergency measures to restrict lending.

On Saturday, KB Kookmin blocked new applications for home purchase mortgage loans. Hana plans to limit new applications for both mortgage and jeonse loans, or long-term housing rental deposits, starting Tuesday.

Shinhan and Woori are also expected to follow suit.

Yonhap