Seoul, Feb 20 (IANS) South Korea’s household credit growth slowed in the fourth quarter of 2025 amid tighter lending regulations, though the total outstanding amount reached an all-time high, central bank data showed on Friday.

Outstanding household credit stood at 1,978.8 trillion won (US$1.36 trillion) as of end-December, up 14 trillion won from three months earlier, according to the preliminary data from the Bank of Korea (BOK), reports Yonhap news agency.

The reading marks the highest since the BOK began compiling relevant data in 2002.

It also represents the seventh consecutive quarterly increase, though the pace of growth slowed for the second straight quarter.

Household credit refers to credit purchases and loans extended to households by financial institutions.

In detail, household loans stood at 1,852.7 trillion won at the end of December, up 11.1 percent from three months earlier. Of the total, mortgage lending rose 7.3 trillion won to 1,170.7 trillion won, slowing from a 12.4 trillion-won increase in the previous quarter.

Credit purchases climbed 2.8 trillion won on-quarter to 126 trillion won, slowing from a 2.9 trillion won rise in the third quarter, the data showed.

“As the government has been emphasising strict management of household lending since the beginning of the year, household debt is unlikely to increase sharply for the time being,” BOK official Lee Hye-young told a press briefing.

“But uncertainties remain high, given the slight increase in housing transactions toward the end of last year and the resumption of lending operations by financial institutions at the start of the year,” the official added.

The government has implemented a series of measures to cool the overheated housing market and curb household debt. Under the comprehensive policy package announced in October, the government designated 21 additional districts in Seoul as speculative zones, bringing all 25 districts in the capital under stricter regulations.

It also tightened lending rules, lowering the cap on mortgage loans to as little as 200 million won, down from the 600 million-won limit set in June.

—IANS

na/