Korea's multi-household borrowers have reported a sharp increase in mortgage debt, which reached an estimated 373 trillion won last year, up 36 trillion won from the previous year. The data, submitted to the National Assembly by the Bank of Korea and the National Data Agency, indicates a rising trend in the proportion of mortgage loans held by multi-household borrowers after a period of decline. While overall mortgage debt in Korea has consistently risen, the share attributed to multi-household borrowers has been increasing again after three consecutive years of decline, now accounting for 31.9% of total mortgage lending.

The reported increase in multi-household mortgage loans comes as overall household mortgage debts also continue to rise sharply, from 985.4 trillion won in 2021 to an estimated 1,170.7 trillion won by 2025. The Bank of Korea has indicated that the proposed regulations on extending the maturity of loans for multi-household borrowers aim to contain the increase in household debt while potentially contributing to real estate price stabilization. Nonetheless, any regulatory enhancement will need to consider the potential impacts on housing stability for renters.

Following President Lee Jae-myung's instructions, financial authorities are reviewing measures to tighten management of loans held by multiple homeowners, including restrictions on maturity extensions and additional borrowing. Lawmaker Cha Kyu-geun has emphasized the urgency of managing household debt, particularly with respect to multi-household borrowers, advocating for robust regulatory measures that would stabilize the real estate market and mitigate risks associated with escalating household debt.