Household loans extended by South Korea’s five major commercial banks have surged by nearly 2 trillion won ($1.46 billion) in just less than two weeks since the launch of the new administration.

According to the country’s five major commercial banks on Sunday, the combined balance of household loans increased by 1.998 trillion won to 750.08 trillion won as of June 12.

The five lenders are KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup banks.

This is the first time the banks’ collective household loan balance has surpassed the 750 trillion won mark.

Of that total, mortgage loans alone rose by about 1.5 trillion won to 595.14 trillion won.

Despite the shortened working period—just seven business days in early June due to the presidential election and Memorial Day holidays—the pace of borrowing has raised concerns.

While the new government has been quick to initiate policy discussions aimed at curbing a potential housing price surge, market sentiment remains largely optimistic.

The anticipated introduction of the third stage of the stress debt service ratio (DSR) regulation next month has also contributed to the borrowing rush.

Under the new rules, loan limits are expected to tighten significantly. Consumers are moving swiftly to secure financing before the restrictions take effect.

According to the Korea Federation of Banks (KFB), the average mortgage interest rate at the five major banks stood at 3.95 to 4.18 percent as of the end of April, down from 4.25 to 4.57 percent in January.

Unsecured credit loans, often considered a barometer of aggressive borrowing behavior, also surged by 600.2 billion won over the same period to reach 103.91 trillion won—the highest since November of last year, when the figure stood at 104.09 trillion won.

Analysts say the jump suggests many consumers are turning to credit loans to supplement mortgage limits that have been tightened through various regulations.

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