South Korean household debt decreases for first time in nine months

South Korean household debt saw its first net decrease in nine months in September, falling by 2.2 trillion won. While mortgage loans increased by 3.3 trillion won, the growth rate slowed, and other loans, including credit loans, dropped by 5.5 trillion won. The Financial Services Commission noted that seasonal factors, such as holiday bonuses and the disposal of non-performing assets, contributed to the decline. Authorities stated that concerns regarding a year-end 'loan cliff' for actual homebuyers are limited, as group loans for new apartment move-ins are excluded from total volume management targets.

Separately, a report on the five major commercial banks revealed significant disparities in information security budgets. KB Kookmin Bank allocated the highest budget at approximately 86 billion won, followed by NH Nonghyup and Hana Bank. Conversely, Shinhan Bank and Woori Bank reduced their security spending by double digits. This follows recent hacking incidents that resulted in customer data leaks, most notably at Shinhan Bank, where approximately 25,000 customers were affected. In response to these vulnerabilities, banks are considering increasing security investments for the coming year.

In fraud prevention efforts, KB Kookmin Bank partnered with the National Police Agency to conduct campaigns for the elderly, reporting that AI-based detection and police cooperation helped prevent approximately 150 billion won in financial fraud through September. Additionally, Nonghyup Mutual Finance reported a 63% year-on-year decrease in losses from fraudulent accounts in the second quarter due to enhanced monitoring and identity verification measures.