South Korea’s banks expand household lending at the fastest pace in nearly two years in May, with Bank of Korea data linking the rise to increased borrowing connected to stock-market investment. Total outstanding household loans at banks increase by 6.9 trillion won to 1,181.8 trillion won, accelerating from a 2.1 trillion won increase the previous month. The May growth is the sharpest monthly rise since August 2024, when household loans grew by 9.2 trillion won. Mortgage lending rises by 3.2 trillion won in May, up from a 2.7 trillion won gain in April. Unsecured and other household loans also rise by 3.7 trillion won in May after declining by 600 billion won the previous month, representing the largest increase since April 2021. The central bank attributes the faster pace of growth primarily to rising individual investment activity in a rallying stock market. In May, the Korea Composite Stock Price Index climbs to around 8,400 points from about 6,500, supported by gains in semiconductor shares, which aligns with the reported increase in non-mortgage borrowing.