South Korea’s household lending rate soars to highest in 10 years: report

The household lending rate hit 5.57% per annum on average in November.

South Korea’s banks charged the highest household lending rate to new loans in over a decade in November 2022, hit by the local central bank’s aggressive rate increases, according to a report by Yonhap, based on preliminary data released by the Bank of Korea (BOK).

The household lending rate hit 5.57% per annum on average in November, up 0.23 percentage point (ppt) from October. 

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It is the highest level since March 2022, when the rate was at 5.62%.

The BOK has raised the rate by a combined 2.75 ppts since August 2021 to tame inflation, according to Yonhap. The rate currently stands at 3.25%.