South Korean financial authorities have identified 1,167 cases since 2021 in which business-loan proceeds were used for purposes other than those originally declared, including home purchases. The flagged contracts had original loan amounts totaling 389.1 billion won, or about $291.1 million. Detections rose from 58 in 2021 to 384 in 2025, while 267 cases had already been recorded by Aug. 25, 2026. Banks accounted for 746 cases, followed by mutual finance institutions with 241 and savings banks with 163. Data obtained by ruling People Power Party Representative Park Min-kyu, a member of the National Assembly's Political Affairs Committee, showed weaknesses in post-loan reviews, fund-use verification and on-site inspections. The Financial Supervisory Service is tightening oversight, while the Korea Credit Information Services plans to improve its violation-record registration system. The findings have heightened concern that business loans could be used to bypass household-loan regulations as household borrowing rose by 38 trillion won in the first eight months of 2026.