Banks' lending rates rise for 3rd consecutive month in Jan. amid regulations

▲ A customer visits a bank branch in Seoul in this Jan. 12, 2026, file photo. (Yonhap)

lending rates-tally

Banks' lending rates rise for 3rd consecutive month in Jan. amid regulations

SEOUL, Feb. 27 (Yonhap) -- Banks' overall lending rates rose for the third consecutive month in January, driven by higher household loan rates amid tighter regulations aimed at stabilizing the housing market, data showed Friday.

The average interest rate on new bank loans stood at 4.24 percent last month, up 0.05 percentage point from December, according to the data from the Bank of Korea (BOK).

The figure has increased steadily since November 2025.

The increase came as the rate on new household loans climbed 0.15 percentage point to 4.5 percent, marking a fourth consecutive monthly increase. In particular, the average rate on home-backed mortgage loans rose 0.06 percentage point to 4.29 percent.

The government earlier introduced stricter rules on home purchase loans to cool the overheated property market and rein in household debt.

The average rate on corporate loans, however, edged down 0.01 percentage point to 4.15 percent, posting its first decline since November.

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

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