S. Korean Banks' Lending Rates Fall for First Time in Four Months

SEOUL, April 28 (Yonhap) -- Banks' overall lending rates fell for the first time in four months in March as a decline in corporate loan rates outweighed a rise in household lending rates amid tighter regulations aimed at stabilizing the housing market, data showed Tuesday. The average interest rate on new bank loans stood at 4.2 percent last month, down 0.06 percentage point from February, according to the data from the Bank of Korea (BOK). It marked the first on-month decline since November. The average rate on corporate loans fell 0.06 percentage point to 4.2 percent, while the rate on new household loans rose 0.06 percentage point to 4.51 percent. The average rate on mortgage loans edged up 0.02 percentage point to 4.34 percent, reaching the highest level since November 2023, when the figure stood at 4.48 percent. The government has imposed stricter rules on home purchase loans to cool the overheated property market and rein in household debt. At its latest rate-setting meeting earlier this month, the central bank kept its benchmark interest rate unchanged for the seventh consecutive meeting, as uncertainty in the Middle East prompted a cautious stance amid risks of inflation, currency weakness and slower growth.