South Korean banks tighten credit loan limits amid debt‑investment surge

South Korean financial regulators have ordered banks to tighten household credit lending after rapid growth in loans used for stock‑market investment. NH Nonghyup Bank was found to have exceeded the annual ceiling for household loans, driven by a surge in regional mortgage lending. The bank responded by raising mortgage rates, limiting non‑face‑to‑face loan applications, restricting mortgage‑insurance participation and raising loan thresholds.

Other major banks have introduced similar curbs. Hana Bank capped new personal‑loan amounts at 100 million won regardless of borrower income. Shinhan Bank will halt non‑online credit‑loan processing once daily application volumes surpass internal limits, creating a “first‑come‑first‑served” loan race. Woori Bank stopped accepting credit‑loan applications from comparison platforms such as KakaoPay and Toss. These measures aim to curb the rapid increase in high‑risk credit‑loan demand and align banks with regulators’ reduced growth targets for household debt.