Business · Economy · 2 hrs ago
Personal loans fall as South Korean businesses borrow more
Personal credit loans at five major South Korean banks fell by 1.64 trillion won in the nine days to October 23.
The banks are KB Kookmin, Shinhan, Hana, Woori and NH Nonghyup.
Some individual investors repaid money borrowed to invest in shares as stock-market volatility increased, while salary payments may also have contributed to the decline.
By October 29, household loans were still 3,942 billion won lower than on October 14.
Business loans rose by 6.37 trillion won over that same period, including 3.56 trillion won in loans to small and medium-sized businesses.
Companies borrowed to secure funds for day-to-day operations, even as banks expected to tighten lending checks, especially for smaller firms.
The opposing loan trends may continue as individuals repay investment debt and companies seek operating funds.
Personal loans at South Korea’s five major banks fell in late October, while business lending rose.
The banks’ unsecured personal loan balances dropped by 1.6424 trillion won between October 14 and 23.
By October 29, personal loans remained 568.1 billion won below their October 14 level.
Business loans increased by 6.3721 trillion won between October 14 and 29.
Banks attributed the opposing trends to individuals repaying investment-related borrowing and companies seeking working capital.
- Who
- Customers and businesses borrowing from South Korea’s five major banks.
- What
- Personal loan balances fell while business loan balances rose.
- When
- The reported changes were between October 14 and October 29, 2026.
- Where
- South Korea.
- Why
- Banks linked personal loan repayments to stock-market volatility and business borrowing to demand for working capital.
Individuals repaying investment-related loans
Companies seeking working capital
Borrowing trend
Individuals repaying investment-related loans
Personal loan balances fell, as individuals repaid money borrowed for stock investments.
Companies seeking working capital
Business loan balances rose as companies secured funds, including for working capital.
Change from October 14 to 29
Individuals repaying investment-related loans
The banks’ personal loan balances were 568.1 billion won lower.
Companies seeking working capital
The banks’ business loan balances were 6.3721 trillion won higher.
The five banks’ personal loan balances had risen by 1.4803 trillion won from the previous month-end.
Personal loan balances were 1.6424 trillion won below their October 14 level.
Personal loan balances remained 568.1 billion won below their October 14 level, while business loans were up 6.3721 trillion won.
- Banks
- Five major South Korean commercial banks
- Personal loans
- Down 1.6424 trillion won from October 14 to 23
- Personal loans
- Down 568.1 billion won from October 14 to 29
- Business loans
- Up 6.3721 trillion won from October 14 to 29
- Small and medium-sized business loans
- Up 3.5574 trillion won from October 14 to 29