S. Korea Household Lending Accelerates Amid Seoul Housing Rally

South Korea’s household loan growth accelerated in the first quarter, highlighting persistent housing-related financial risks facing the Bank of Korea ahead of its first rate-setting meeting under the new governor next week.

Household loans increased 12.9 trillion won ($8.6 billion) in the January-March period from the previous quarter, according to preliminary data released Tuesday by the central bank. That marked an acceleration from an 11.3 trillion won increase in the previous quarter, driven by stronger mortgage-related lending and increased borrowing through non-bank financial institutions.