The government's real estate lending restrictions have dealt the biggest blow to borrowers in their 30s, according to new data from the Bank of Korea.
Analysts say this age group, which typically has less cash on hand and relies most heavily on loans, has been unable to clear the higher borrowing hurdles.
According to the BOK's "Household Debt by Borrower" report released on the 24th, new mortgage loans per borrower averaged 212.86 million won in the fourth quarter of last year, down 14.21 million won from the previous quarter. After declining by 4.79 million won in the second quarter and rising by 17.12 million won in the third quarter, the figure has returned to a downward trend.
New mortgage amounts declined across all age groups. Borrowers in their 30s saw the steepest drop, with average new mortgages falling 32.59 million won to 255.33 million won in the fourth quarter. They were followed by those in their 40s (-13.16 million won), 20s (-9.93 million won), 60s and older (-7.21 million won), and 50s (-3.77 million won). The 30s age group, with the highest demand for first-home purchases, took the hardest hit.
Experts interpret this as the beginning of the full impact from the October 15 real estate measures. Under these measures, the government capped mortgage limits for homes in the Seoul metropolitan area and regulated zones: 600 million won for properties valued at 1.5 billion won or less, 400 million won for those between 1.5 billion and 2.5 billion won, and 200 million won for properties exceeding 2.5 billion won. The regulations effectively target apartments in Seoul and the surrounding metropolitan area. Accordingly, the largest decline in new mortgage originations by region occurred in the Seoul metropolitan area, down 37.14 million won.
"Overall, as both new household loan originations and the number of borrowers decreased, the average loan amount per borrower fell, driven by declines in household lending among groups with higher average originations, such as those in their 30s and residents of the Seoul metropolitan area," said Min Suk-hong, head of the BOK's Household Debt Micro Statistics Team.
By age group, borrowers in their 30s accounted for the largest share of new mortgage originations in the fourth quarter at 37.1% of the total, followed by those in their 40s (29.5%), 50s (18.3%), 60s and older (10.3%), and 20s (4.8%).
Including unsecured loans, new household loans per borrower totaled 34.43 million won, down 4.09 million won from the previous quarter. The decline was observed across all age groups, with borrowers in their 30s seeing an 8.18 million won decrease.
Outstanding mortgage balances per borrower rose to 158.27 million won in the fourth quarter, up 2.01 million won from the previous quarter. Increases were seen across all age groups, including those in their 20s (+4.24 million won), 40s (+4.23 million won), and 30s (+4.04 million won). Outstanding household debt per borrower reached 97.39 million won, up 650,000 won from the previous quarter, driven primarily by increases among those in their 40s (+1.7 million won) and 50s (+510,000 won).
The BOK began publishing quarterly household debt statistics by borrower at the end of last year. Previously, household debt data was released only by lending institution and loan purpose, with borrower characteristics analyzed only occasionally through irregular reports.