South Korea’s five major banks—KB Kookmin, Shinhan, Hana, Woori and NH Nonghyup—raised their combined annual household-loan growth target from 4.34 trillion won to 6.98 trillion won, an increase of about 60%. Yet excluding policy-backed products, their household-loan balances had already risen close to the revised ceiling, leaving roughly 300 billion to 310 billion won in practical capacity. From September, net increases in group loans will be excluded from quota calculations, while 70% of qualifying credit-loan growth for medium- and low-credit borrowers will also be excluded. The changes should ease financing for reconstruction, redevelopment and new apartment projects more than for buyers of existing homes, whose mortgages will remain subject to the cap. Separate lending controls are also reshaping the card market: card-loan balances declined while cash advances and revolving credit increased, despite their higher interest rates and exclusion from debt-service-ratio calculations. Authorities plan to encourage cheaper mid-rate lending, but card issuers face weaker profitability, rising funding costs and increasing delinquency risks.