South Korean banks’ deposits and household loans expanded in June

Corporate loans and asset management funds fell.

South Korean banks’ deposits and household loans grew by a larger margin in June 2025 than the previous month, according to central bank data.

South Korean banks saw their transferable deposits rise by $19.88b (KRW27.3t) in June 2025, the Bank of Korea (BOK) reported. This is larger than the $14.7b (KRW20.2t) expansion in May 2025.

Bank lending to the household sector grew $4.5b (KRW6.2t) in June, extending the $3.78b (KRW5.2t) loan growth in May.

Growth in home mortgage loans accelerated in June, reflecting the lagged effects of the increase in housing transactions over the past few months, the BOK said.

In contrast, bank lending to the corporate sector and funds under management at asset management companies declined.

Bank lending to the corporate sector declined by $2.62b (KRW3.6t).

Bank lending to large corporations decreased, although bank lending to small and medium enterprises (SMEs) slightly increased.

Funds under management in asset management companies also declined by $946m (KRW1.3t).

(US$1 = KRW1,373.72; as of 10 July 2025, Google, From Morningstar)