Banks' lending rates rise for 4th consecutive month in February on higher mortgage rates

Banks' overall lending rates rose for the fourth consecutive month in February, driven by higher mortgage loan rates amid tighter regulations aimed at stabilizing the housing market, data showed Friday. The average interest rate on new bank loans stood at 4.26 percent last month, up 0.02 percentage point from January, according to the data from the Bank of Korea (BOK). The figure has increased steadily since November 2025. The average rate on corporate loans rose 0.05 percentage point to 4.2 percent. The rate on new household loans, however, fell 0.05 percentage point to 4.45 percent, marking the first decline in five months, mainly due to a reduced share of unsecured loans with relatively high interest rates. But the average rate on mortgage loans edged up 0.03 percentage point to 4.32 percent, reaching the highest level since November 2023 as stricter rules on home purchase loans remained in place to cool the overheated property market and rein in household debt. At its latest rate-setting meeting late last month, the central bank kept its benchmark interest rate unchanged for the sixth

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