South Korea Household Excess Funds Surge to 58 Trillion Won in Q3 2025 as Lending Tightens
South Korean household excess funds reached 58 trillion won in Q3 2025, driven by rising income and strict lending regulations, according to the Bank of Korea.
Korean households are sitting on more cash, but it's not just because they're earning more. While incomes rose, a wall of new lending regulations effectively capped borrowing, leaving a massive pile of 58 trillion won ($40 billion) in excess funds on household balance sheets during the third quarter of 2025.
South Korea Household Excess Funds Q3 2025 Breakdown
According to preliminary data released by the Bank of Korea (BOK) on Thursday, net financial funds—the surplus remaining after subtracting liabilities from financial assets—rose from 51.3 trillion won in the previous quarter. This 13% jump reflects a shifting economic landscape where saving is outpacing the ability to take on debt.
| Category | Q2 2025 | Q3 2025 |
|---|---|---|
| Net Financial Funds | 51.3T Won | 58.0T Won |
| Fund Investment (Assets) | 76.9T Won | 78.8T Won |
| Fundraising (Liabilities) | 25.6T Won | 20.7T Won |
Income Growth vs. Regulatory Hurdles
The BOK attributed the rise to two primary drivers. First, income growth outstripped spending, bolstered by government stimulus measures from the previous year. Fund investments, including bank deposits, grew by 1.9 trillion won to 78.8 trillion won. Second, borrowing plummeted as authorities tightened lending rules to cool off rising home prices, with fundraising falling to 20.7 trillion won.
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