Loan balance grows by 684.9 billion won in six months

As of the end of 2025, total lending balance across the non-bank lending industry stood at 13.1402 trillion won. This marks an increase of 684.9 billion won, or 5.5%, compared to the end of June 2025, when the balance stood at 12.4553 trillion won. Over the same period, the number of borrowers using non-bank lenders rose to 731,000, up 14,000, or 2.0%, from six months earlier. With banks tightening lending standards, borrowers lacking sufficient collateral or with lower credit scores appear to have increasingly turned to non-bank lenders, which carry comparatively lower barriers to entry. The rise in non-bank lending balances also reflects a growing pool of borrowers being pushed out of mainstream financial channels.

Both credit and secured loans rise, large lenders' rates increase

By loan type, credit loans reached 5.393 trillion won, or 41.0% of the total, up 6.0%, while secured loans climbed to 7.7472 trillion won, or 59.0%, up 5.1%. Both categories posted growth rates approaching double digits, driving the overall expansion in lending balances. The industry-wide average lending rate held steady at 13.9% annually, unchanged from the end of June. However, personal credit loan rates at large lenders with assets of 10 billion won or more rose to 18.8% annually, up 0.7 percentage points. The average personal credit loan balance per borrower also increased to 5.69 million won, up 100,000 won from 5.59 million won in the first half. Total lending balances at large lenders reached 8.6561 trillion won, up 346.2 billion won, or 4.2%, with personal credit loans rising by 94.8 billion won and affiliate loans increasing by 306.8 billion won. The gains reflect large lenders expanding services aimed at high-credit borrowers as their funding costs declined.

Delinquency rate falls to 10.2%, down 1.9 percentage points

The delinquency rate for loans overdue 30 days or more at large lenders fell to 10.2%, down 1.9 percentage points from 12.1% in the first half. Expanded sales of delinquent receivables reduced the delinquent balance by 120.4 billion won, while an increase in new loans to high- and medium-credit borrowers, along with growth in affiliate lending, also contributed to the decline. Even as lending volumes grew, management of non-performing loans improved. Behind the simultaneous rise in lending balances and drop in delinquency rates lies a lending approach increasingly focused on borrowers with proven repayment capacity.

Registered non-bank lenders decrease by 507

The total number of registered non-bank lenders stood at 7,696, down 507 from six months earlier. While corporate lenders increased by 16, individual lenders fell by 523, driving the overall decline. By registering authority, lenders registered with local governments fell by 576, while those registered with the Financial Services Commission rose by 69. Purchased debt collection firms increased by 56 to 911, with the balance of purchased receivables rising by 2.434 trillion won to 22.4038 trillion won. Loan brokerage firms decreased by 169 to 2,872, though brokered loan amounts rose 37.5% to 2.4542 trillion won. As small individual lenders exit the market, the industry's structure is being reorganized around large lenders and purchased debt collection businesses.