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Rates for household loans inch up in May

Bank lending rates on new household loans inched up in May and interest rates paid by banks on new deposits remained unchanged, central bank data showed Thursday.

The average interest rates on fresh household loans extended by local banks came to 3.47 percent in May, up 0.06 percentage point from the previous month, according to the Bank of Korea.

The BOK data came amid South Korea's efforts to tackle rising household debt.

South Korea's household debt stood at 1,359.7 trillion won ($1.2 trillion) as of end-March, a dramatic increase from 665 trillion won at the end of 2007, according to the Bank of Korea.

The average interest rates on new mortgages came to 3.26 percent in May, up 0.05 percentage point from April, according to the BOK.

The interest rates on all new loans stood at 3.45 percent in May, up 0.03 percentage point from a month earlier. The rates on new corporate loans came to 3.45 percent in May, up 0.03 percentage point from the previous month.

The average rates paid by banks on fresh deposits remained unchanged at 1.48 percent in May.

The gap between the interest rates paid to and by banks came to 1.97 percent in May, up from 1.94 percent in April. (Yonhap)
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