▲ A loan service counter at a bank in Seoul is seen in this file photo taken May 19, 2026. (Yonhap)

credit loan-May

Credit loans at local banks sharply rise in May amid stock rally

SEOUL, May 31 (Yonhap) -- Credit loans at major South Korean banks surged in May at the fastest pace in more than five years, data showed Sunday, as investors increasingly took out loans to buy stocks amid a record-breaking market rally.

Outstanding credit loans at five major lenders -- KB Kookmin, Shinhan, Hana, Woori and NH Nonghyup -- stood at 107 trillion won (US$70.9 billion) as of Friday, according to data compiled by the banks.

The total increased by 2.65 trillion won from the end of April, or 2.55 percent on a monthly basis.

The pace of growth was the fastest since April 2021, when the benchmark Korea Composite Stock Price Index (KOSPI) first surpassed the 3,200-point mark.

The KOSPI recently climbed above 8,000, driven by strong gains in chipmakers amid robust demand for artificial intelligence (AI) semiconductors. It closed at 8,476.15 on Friday.

The sharp increase in credit lending contrasted with the relatively subdued growth in mortgage loans.

Outstanding mortgage loans at the five banks totaled 612.27 trillion won as of Friday, up just 25 billion won from a month earlier.

Mortgage lending increased by 1.9 trillion won in April, marking the largest monthly gain since August 2025, when it rose by 3.7 trillion won. Growth has since moderated as the government tightened housing market regulations to curb home prices in the greater Seoul area.

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