Internet banking users in South Korea reached records, but online loan applications declined as banks tightened non-face-to-face lending after household debt rules took effect. Individual users at 19 domestic banks and the postal service rose 4.9% year on year to 234.37 million at the end of June, counting duplicate registrations, while corporate users increased 5.5% to 15.659 million. Loan applications fell 10.5% to 5.4164 million in the first half, and their value dropped 26.0% to a daily average of 600 billion won ($430 million). By contrast, fund-transfer values rose 24.4%. The decline followed June 27 mortgage-limit measures, the July 1 introduction of the third phase of the stress DSR, and additional restrictions on September 7 and October 15. The average application fell 9.2% to 23.03 million won from 25.36 million won a year earlier. Banks also became more restrictive as new mortgage rates rose to 4.48% in July from 3.96% last September. After most banks exceeded their 1.5% household-loan growth targets around July, Hana Bank suspended new non-face-to-face mortgages, while Shinhan Bank and Woori Bank limited daily online credit-loan applications. Regulators later raised the target to 3.0%, but much of the additional capacity went to group loans commonly arranged through agents.