South Korea’s financial regulators warned that household borrowing is likely to remain under pressure in the coming months despite slower overall loan growth in June, saying earlier increases in home purchases are still working their way through the financial system.

Household loans across all financial institutions rose by $5.5.billion (8.3 trillion won) in June, down from $6.1 billion (9.3 trillion won) in May but above the $4.3 billion (6.5 trillion won) recorded a year earlier. Mortgage lending accelerated to about $3 billion (4.5 trillion won) as banks expanded housing loans, while growth in other lending slowed after banks tightened management