韩国央行-房地产行业的信贷集中：结构性驱动因素和风险（英）

1① Over the past decade, financial institutions’ credit supply has been increasingly concentrated in the real estate sector. By the end of 2024, the total funds provided by households and businesses to the real estate sector reached KRW 1,932.5 trillion, accounting for half of the nation’s total credit to private non-financial sector. ② The real estate sector in South Korea exhibits a disproportionately high concentration of loans compared to its contribution to the nation’s total value added. This excessive allocation of financial resources to real estate restricts the availability of credit for more productive sectors, ultimately diminishing the capital’s value-added effect and negatively impacting economic growth. In fact, our research on the relationship between Korea’s private credit and economic growth shows that the quantitative expansion of private credit in the real estate sector actually limits the positive impact of private credit on overall economic growth. ③ The continued expansion of credit to the real estate sector has strengthened the connection between the credit market and real estate market. As a result, the financial system has become more vulnerable to both domestic and external shocks. A sudden decline in real estate prices could trigger debt deleveraging, potentially increasing risks to the financial system and causing the real economy to contract. Additionally, financial institutions’ continued reliance on real estate-backed lending practices discourages the innovation of financial services, weakening the No. 2025-09BANK OF KOREABOK Issue NoteApril 25, 2025Credit Concentration in the Real Estate Sector : Structural Drivers and RisksChu Myeongsam Harm KeonSenior Economist, Financial Markets Research Team,Financial Markets Department, Bank of KoreaTel. 02-759-5677mschu@bok.or.krEconomist, Market Operations Team,Financial Markets Department, Bank of KoreaTel. 02-759-4557keonharm@bok.or.krLee Yongho Yun JiyuEconomist, Market Operations Team,Financial Markets Department, Bank of KoreaTel. 02-759-4575lusi0494@bok.or.krJunior Economist, Financial Markets Research Team,Financial Markets Department, Bank of KoreaTel. 02-759-5399jiyu.y@bok.or.kr2competitiveness of the domestic financial sector. ④ The sustained concentration of credit in South Korea’s real estate sector stems from three interconnected factors: persistent demand from households and corporations, profit-driven strategies of financial institutions, and regulatory incentives favoring real estate-backed lending. In particular, financial institutions have focused on real estate-collateralized loans because these loans offer relatively stable profits with lower risks, especially given their heavy reliance on interest income. Policy supported housing loans—combining direct lending support and indirect guarantees—have expanded rapidly, contributing to the increase in real estate credit. Above all, under the BIS capital regulation system, real estate-collateralized loans are a