Household loans extended by domestic banks are estimated to have increased by more than four trillion won in August, rebounding after a temporary slowdown in July.

According to the financial sector on Sunday, total household credit extended by all financial institutions rose by four-point-two trillion won as of August 28, compared to the previous month.

This marks a sharp increase from July's two-point-two trillion won growth, the smallest monthly gain since March.

While mortgage lending at banks declined for the second consecutive month in August, other types of borrowing, such as personal loans, rose significantly, driven by seasonal demand related to summer vacations and residential moves.

The government maintains that demand for household loans has weakened since June 27, when financial regulators imposed a cap of 600 million won on home-backed loans for property purchases in the capital region, but officials noted it is still too early to determine whether a stable downward trend has taken hold.