Interest rates on home mortgage loans and credit loans soared to over three percent and the mid-four percent range, respectively, in October.
According to Bank of Korea(BOK) data on Friday, the interest on home mortgage loans rose zero-point-25 percentage points in a month to an average three-point-26 percent last month, the highest since November 2018. The increase is also the steepest in six and a half years.
Interest on credit loans also jumped zero-point-47 percentage points to four-point-62 percent last month, the highest since March 2019.
Song Jae-chang, director of the BOK's financial statistics team, said that benchmark rates have increased while banks also raised lending costs across the board in part to suppress loan extensions to households.
Bank rates are feared to rise even further following the BOK's latest key rate hike.