First Drop in 11 Months: South Korea Household Loans Decline 2.2 Trillion Won in Dec 2025
South Korea household loans saw a 2.2 trillion won decline in Dec 2025, the first drop in 11 months. Explore how BOK data and Seoul's lending rules are cooling the market.
2.2 trillion won just vanished from the debt pile. For the first time in 11 months, South Korean household loans have hit the brakes, signaling a frosty turn for the capital's overheated property market.
Analyzing the South Korea Household Loans Decline 2025 Trends
According to the Bank of Korea (BOK), outstanding household loans stood at 1,173.6 trillion won at the end of December 2025. This 2.2 trillion won monthly drop is the first meaningful contraction since January 2025. It's clear that the government's mid-October decision to place all 25 districts in Seoul under speculative zone regulations is finally biting.
Mortgage Caps and the Corporate Debt Pullback
The crackdown isn't just affecting home buyers. While mortgage loans fell by 0.7 trillion won, unsecured loans saw an even steeper decline of 1.5 trillion won. Corporate loans also plummeted by 8.3 trillion won as firms scrambled to clean up their balance sheets for the year-end audit.
| Category | Nov 2025 Change | Dec 2025 Change |
|---|---|---|
| Household Loans | +1.2T Won | -2.2T Won |
| Mortgage-backed | +0.8T Won | -0.7T Won |
| Corporate Loans | +6.2T Won | -8.3T Won |
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