South Korea Household Credit Hits KRW1,953 Trillion, Fastest Growth Since 2022

South Korea’s household borrowing climbed to KRW 1,952.8 trillion ($1.46 trillion) at the end of June, Bank of Korea data show. Credit expanded 1.3% from the previous quarter, an acceleration from the 0.1% increase recorded at end-March, and rose 3.0% from a year earlier—the fastest annual pace since mid-2022. The pickup was led by mortgage lending, underscoring renewed heat in the property market after a brief cooling period. Governor Rhee Chang-yong said home prices are “continuing to rise fast” in parts of Seoul, highlighting a potential flashpoint for financial stability. The figures add pressure on the Bank of Korea, which has kept its policy rate at 3.50% since January, to balance inflation risks against a still-fragile economic recovery. Policymakers meet next on 29 August.