South Korea's household credit broke another record for the third quarter due to the COVID-19 pandemic, also driven by a rise in banks' home-backed loans.

According to the latest data from the Bank of Korea(BOK) on Tuesday, household credit reached a record high of one-point-682 quadrillion won as of the end of September, up 44-point-nine trillion won from three months earlier.

The latest amount of household credit was the highest since the central bank began compiling related data in the fourth quarter of 2002.

Household lending extended by banks and other financial institutions reached a record one-point-586 quadrillion won, up 39-point-five trillion won from the second quarter.

Mortgage loans rose by 17-point-four trillion won on-quarter to 890-point-four trillion won. This is an increase from a jump of 14-point-eight trillion won in the second quarter.

A BOK official said there was increased demand for mortgage loans in the July to September period due to "panic buying" of homes amid soaring prices, as well as demand for credit to cover living expenses amid the pandemic.