Household loan rates in South Korea have moved close to 5%, while fixed-rate home loans exceeded 5% for the first time since separate tracking began. The Bank of Korea said the average rate on new household loans reached 4.96% in September, up 0.20 percentage points from the previous month, and the average mortgage rate rose to 4.88%, its highest level since April 2012.
Variable-rate loans accounted for 57.8% of outstanding household loans, leaving borrowers exposed to further payment pressure if market rates remain elevated.