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South Korea's household loans fall for first time since Dec 2025
In September 2026, the outstanding balance of household loans across all financial sectors in South Korea dropped KRW2.2 trillion, marking the first decline since December 2025. This was mainly due to a slower pace of growth in home-backed mortgage loans and a considerably faster decline in other types of loans. The Financial Services Commission (FSC) attributed the decrease to factors such as a drop in housing transactions, bad debt write-offs, and seasonal holiday bonuses.
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