New household loans per borrower fell to their lowest level in more than three years in the second quarter as banks tightened lending controls. New mortgage lending posted its steepest decline since the data series began.
New household loans per borrower totaled 34.14 million won in the second quarter, down 1.28 million won from the previous quarter, according to second-quarter household debt statistics by borrower released by the Bank of Korea on the 25th. That was the lowest level in 13 quarters, since the first quarter of 2023, when the figure stood at 33.44 million won.
New mortgage lending came to 208.29 million won, down 21.10 million won from the previous quarter and the largest drop since the series started in 2013. The level was also the lowest in six quarters, since the fourth quarter of 2024, when it stood at 206.48 million won.
Min Sook-hong, head of the central bank's household debt microstatistics team, said new lending declined as financial firms tightened loan management, including caps on total household lending. Additional borrowing and refinancing by existing borrowers also shrank, the official said.
By age group, borrowers in their 40s saw the sharpest fall in new mortgage lending, down 3.54 million won, followed by those in their 30s with a decline of 2.63 million won, those in their 50s with 1.28 million won and those in their 60s with 1.07 million won. Only borrowers in their 20s increased, rising 3.92 million won to a record 232.17 million won.
Still, the share of new mortgage lending taken by borrowers in their 30s, the core buying group in the housing market, climbed to its highest level on record. Their share rose 2.3 percentage points from the previous quarter to 43.7%.
Average outstanding mortgage balances per borrower were also highest among those in their 30s, at 234.19 million won. Balances for borrowers in their 20s exceeded 200 million won for the first time, at 203.94 million won. The central bank said balances rose because repayments also fell even as tighter rules curbed additional borrowing and refinancing by existing borrowers.
The Bank of Korea said new lending could increase in the third quarter as the August 13 policy package expands the ceiling on total household lending.
