South Korean banks tighten lending as quotas fill early

South Korean banks are already hitting their lending caps for household mortgages and credits, reflecting a surge in household borrowing that's exceeding annual regulatory targets set for 2026. This move to tighten lending indicates growing concerns over household debt levels, which could have ripple effects on the broader economy. With banks taking preemptive measures, it suggests policymakers are wary of the potential risks posed by an overheated borrowing environment. This situation underscores the challenges in managing economic stability while balancing growth and debt sustainability.