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Bank lending rates rise for 4th straight month in February

Published: 27 Mar. 2026, 15:50

A passerby walks past a poster promoting home mortgage loans put up at a bank in central Seoul on Dec. 7, 2025. [YONHAP]

Banks' overall lending rates rose for the fourth consecutive month in February, driven by higher mortgage loan rates amid tighter regulations aimed at stabilizing the housing market, data showed Friday.

The average interest rate on new bank loans stood at 4.26 percent last month, up 0.02 percentage points from January, according ording from the Bank of Korea (BOK).

The figure has increased steadily since November of last year.

The average rate on corporate loans rose 0.05 percentage points to 4.2 percent.

The rate on new household loans, however, fell 0.05 percentage points to 4.45 percent, marking the first decline in five months, mainly due to a reduced share of unsecured loans with relatively high interest rates.

But the average rate on mortgage loans edged up 0.03 percentage point to 4.32 percent, reaching the highest level since November 2023 as stricter rules on home purchase loans remained in place to cool the overheated property market and rein in household debt.

At its latest rate-setting meeting late last month, the central bank kept its benchmark interest rate unchanged for the sixth consecutive meeting, seeking to safeguard financial stability amid housing market volatility and a weakened currency.

Yonhap