Business · Economy · 2 hrs ago
Deposit and loan rate gaps diverged at South Korea’s banks
In September, the gap between household loan and deposit rates narrowed at South Korea’s five major banks to an average of 1.35 percentage points.
The banks are KB Kookmin, Shinhan, Hana, Woori and NH NongHyup.
Their average deposit rate rose by 0.27 percentage points, more than the 0.16-point increase in household loan rates.
The three online banks moved the other way, with their average gap widening by 0.13 points to 1.96.
KakaoBank, K Bank and Toss Bank had largely held deposit rates steady after raising them earlier in the year.
Their average household loan rate rose, while their deposit rate edged down.
Online banks’ deposit rates fell below the major banks’ average after being higher in August.
The figures show how banks’ different rate decisions can change the gap between what they pay savers and charge borrowers, while lending restrictions may limit online banks’ room to expand loans.
The average household deposit-loan rate gap at South Korea’s five major commercial banks narrowed by 0.11 percentage points last month to 1.35 percentage points.
At three internet-only banks, the average gap widened by 0.13 percentage points to 1.96 percentage points.
At the major banks, deposit rates rose faster than household loan rates, while the internet-only banks largely held deposit rates steady.
The five major banks’ average savings deposit rate rose by 0.27 percentage points, while their household loan rate rose by 0.16 percentage points.
The internet-only banks’ average savings deposit rate edged down by 0.01 percentage points, while their household loan rate increased by 0.12 percentage points.
- Who
- South Korea’s five major commercial banks and three internet-only banks.
- What
- Their average household deposit-loan rate gaps moved in opposite directions: the gap narrowed at the major banks and widened at the internet-only banks.
- When
- Last month, according to an article published on October 30, 2026.
- Where
- South Korea.
- Why
- Deposit rates rose faster than loan rates at the major banks, while internet-only banks largely held deposit rates steady as their loan rates increased.
This story does not have two clearly opposing sides.
The five major banks’ household deposit-loan rate gap was 1.51 percentage points.
The Bank of Korea raised its base rate to 3.00%, after which market rates rose.
The five major banks’ average gap narrowed to 1.35 percentage points, while the three internet-only banks’ average gap widened to 1.96 percentage points.
Maeil Business published its report on the divergent rate-gap movements.
- Five major banks’ average gap
- 1.35 percentage points, down 0.11 percentage points
- Three internet-only banks’ average gap
- 1.96 percentage points, up 0.13 percentage points
- Major banks’ savings deposit rate
- Rose from 3.15% to 3.42%
- Internet-only banks’ savings deposit rate
- Fell from 3.37% to 3.36%
- Largest decline among major banks
- Kookmin Bank’s gap fell by 0.27 percentage points to 1.18 percentage points
1 source
What people are saying
Changes in rates were affected by increased demand for fixed-rate mortgage loans