Household borrowing in South Korea accelerated sharply in June, with bank loans to individuals rising by 7.6 trillion won ($5.4 billion) from the previous month.
The surge was driven by a combination of increased mortgage activity and heightened demand for stock market investments, according to data reported by Yonhap.
The jump in credit extension underscores the resilience of domestic demand despite a tightening monetary environment.
South Korean banks had previously raised the average interest rate on new household mortgage loans in May, reversing a downward trend that had persisted in earlier months.
This rate increase suggests that borrowers are willing to absorb higher financing costs to maintain leverage, particularly in the housing and equity sectors.
The credit expansion aligns with broader signs of economic confidence in the region.