South Korean households sought more credit in the second quarter of 2026 even as tighter underwriting and housing-market regulations reduced per-borrower new lending. The Bank of Korea's household general loan demand index rose 14 points to 31, its highest since 41 in the second quarter of 2020, while the household general loan attitude index fell to -22 from -8, indicating more cautious screening. Per-borrower new household lending fell 1.28 million won, or 3.6%, from the previous quarter to 34.14 million won, approximately $25,000, the lowest since the first quarter of 2023. Per-borrower new mortgage origination fell 21.1 million won, or 9.2%, to 208.29 million won, approximately $160,000, from a record 229.39 million won. Mortgage demand nevertheless rose to 11 from -8, while banks' mortgage lending attitude index declined to -19 from -6. Household credit risk increased to 31 from 19, its highest since 39 in the first quarter of 2023. The Bank of Korea expects household loan demand to ease in the third quarter while conservative underwriting continues.