An automated teller machine (ATM) at a commercial bank in Seoul on the 19th. [Yonhap News] 

It has been found that "other loans" at the five major commercial banks (KB Kookmin, Shinhan, Hana, Woori, and NH NongHyup) surged in the first half of this year, exceeding their target by nearly 2.4 trillion won.

As "other loans," such as credit loans, increased due to the so-called "debt-financed investment" craze, banks have begun tightening management by reducing mortgage loans starting in July.

According to data submitted by the Financial Supervisory Service to Representative Lee Yang-soo of the People Power Party, a member of the National Assembly's National Policy Committee, on the 22nd, other loans at the five major commercial banks increased by 3.4658 trillion won as of the end of June this year.

This figure exceeds the combined target for other loans (1.0924 trillion won) by approximately 2.4 trillion won, which is about 3.2 times the original goal.

Woori Bank issued 1.0696 trillion won in such loans, 8.2 times its target of 131 billion won, while Hana Bank issued 759.9 billion won, 8.9 times its target of 85.6 billion won.

Shinhan Bank issued 708.8 billion won, 6.7 times its target of 105.8 billion won, and Kookmin Bank issued 1.18 trillion won, roughly twice its target of 595 billion won.

NongHyup Bank, however, saw a decrease of 252.5 billion won, despite having a target increase of 175 billion won.

Mortgage loans generally maintained a downward trend.

Kookmin Bank reduced its mortgage loans by 1.3149 trillion won by the end of June, nearing its target reduction (1.4096 trillion won), while Woori Bank tightened management to reduce its loans by 502.9 billion won, significantly exceeding its target of 91.9 billion won. Shinhan Bank and Hana Bank also reduced their mortgage loans by 696.5 billion won and 226.9 billion won, respectively, though they fell short of their targets.

In contrast, NongHyup Bank saw its mortgage loans increase by 1.6954 trillion won, far exceeding its target of 260 billion won, signaling a red flag for its loan management.

As a result, it is the only one among the five major banks to have already exceeded its annual target for total household loans (870 billion won). Other banks also surpassed their first-half targets.

With household loans exceeding targets due to a surge in the use of overdraft accounts, banks appear to be focusing on tightening mortgage loans, which are relatively easier to control.

KB Kookmin Bank preemptively reduced its mortgage loan limit from 600 million won to 300 million won earlier this month, and major banks are also taking measures such as temporarily suspending loan applications through loan brokers or restricting mortgage insurance subscriptions.

A financial authority official stated, "It is difficult to manage limits for credit loans such as overdrafts, but mortgage loans are easier to manage and larger in scale, which is why banks seem to be focusing on them."

As the "mortgage squeeze" spreads across the banking sector, demands from actual borrowers for deregulation are growing.

However, the financial authorities maintain that they will strictly uphold the current stance of managing the total volume of household loans.

Shin Jin-chang, Secretary General of the Financial Services Commission, stated during a pre-briefing on business reports, "There is a concern that easing the household debt management stance in the current situation could stimulate the real estate market," adding, "We are not currently considering relaxing the 1.5% target for total household loan growth."

However, the possibility of limited relaxation for certain actual borrowers, such as young people, remains open.

President Lee Jae-myung also said at a cabinet meeting that day, "Only when the real estate problem is normalized can productive reinvestment of resources be possible and social dynamism restored," while adding, "Along with swift real estate supply measures, we will carefully prepare support measures for actual borrowers that align with reality."

Representative Lee Yang-soo pointed out, "As banks further tighten mortgage loans due to the authorities' loan regulations, funding for ordinary actual borrowers is effectively being blocked," and added, "The financial authorities must move away from a one-sided regulatory approach and prepare supplementary measures to minimize harm to actual borrowers."