Household loans fall for 1st time in six months on tightened rules, higher rates

Household loans extended by major banks in Seoul, South Korea, fell for the first time in six months, according to data released in October. The decline was driven by newly implemented tightened regulations and higher interest rates.

The contraction marks a notable shift in the country's borrowing trends, following a prolonged period of expansion. The combination of stricter lending rules and rising borrowing costs has directly impacted household debt accumulation among major financial institutions.