April 27, 2024
Finance
High-rate household loans surge
[THE INVESTOR] High-rate household loans in Korea rose sharply in September and October, data showed Dec. 4.
The portion of new bank loans with an annual interest rate of 10 percent or higher came to 0.5 percent of their total lending in September, a level not seen since February 2015, according to the data from the Bank of Korea.
The percentage maintained the same level in October, compared with a yearly low of 0.2 percent recorded in June.
A central bank official attributed the high share to local banks’ advance rate increases in anticipation of the BOK raising its benchmark interest rate.
Last week, the BOK upped the base rate by a quarter percentage point to 1.5 percent amid clear signs of an economic recovery.
By Alex Lee and newswires
