Bank of Korea Flags Housing Market Risks as Seoul Apartment Prices Surge 10-15% Annually

According to Bank of Korea's official report submitted on July 9, South Korea's financial system remains stable overall, though capital region home prices continue rising sharply. Seoul apartment prices are climbing at an annualized rate of 10-15% amid supply concerns and strengthened buyer expectations, while the Gyeonggi province, particularly restricted areas like Dongtan in Hwaseong, has seen accelerating gains.

Household lending expanded significantly, with monthly increases reaching 8-9 trillion won since May. Credit loans surged as individuals expanded stock investments. The central bank warned of mounting risks from housing market instability and personal leverage, while noting government stabilization efforts and rising loan rates may provide some mitigation.