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Tighter rules on aggregate household loans may be coming, signals financial watchdog chief

Published: 26 Mar. 2026, 16:34

Lee Chan-jin, governor of the Financial Supervisory Service, in a press conference on March 26 in western Seoul [YONHAP]

The chief of the country's financial watchdog said Thursday that authorities are working to draw up measures to curb high household debts, signaling that stricter rules may be set in motion this year.

In a meeting with reporters, Lee Chan-jin, governor of the Financial Supervisory Service (FSS), said there is a high possibility of imposing more stringent rules on aggregate loans by lenders.

The authorities are already planning to announce a set of measures next week to rein in household debts.

“It is hard to predict at which level aggregate household loan growth is set [...] and a tighter target on the aggregate level of household loans than last year is highly likely,” Lee said.

The FSS chief also warned that any illegality in household loan extensions will be sternly punished, citing as an example, a case where a borrower buys a home financed by loans for business-only purposes.

Household loans have recorded a downward trend since December of last year as the government has maintained tighter loan and home purchase regulations since last year in response to surging housing prices in Seoul and parts of the greater metropolitan area.

Household loans extended by Korean banks fell for the third consecutive month in February, though home-backed loans rebounded slightly due to seasonal demand for moving.

President Lee Jae Myung recently reiterated his strong commitment to stabilizing the real estate market and issued strong verbal warnings against owners of multiple homes.

Yonhap