Business · Economy · 17 hrs ago
High-rate deposits rise as cheaper household loans shrink in South Korea
South Korean banks offered higher rates on new term deposits in September, while low-rate household loans became much less common.
Deposits paying at least 4% made up 10.6% of new term deposits, up from 0.5% in August.
The average rate on new term deposits was 3.39%, compared with 2.52% a year earlier.
Only 9.6% of new household loans had rates below 4%, down from 57.6% a year earlier, while 31.6% carried rates of at least 5%.
Higher interest rates mean savers can earn more, but borrowers face higher costs; the average rate on new household loans reached 4.96% in September.
More new home loans also had variable rates, which can change as market rates move: their share was 65.8%, compared with 34.2% for fixed-rate loans.
The article attributes the shift to central bank rate increases and banks competing for deposits, but gives no next steps.
South Korean banks sharply increased the share of new fixed-term deposits paying at least 4%, while the share of new household loans below 4% fell below 10%.
In September, 10.6% of new fixed-term deposits paid at least 4%, up from 0.5% in August.
The share of new household loans below 4% was 9.6%, down from 57.6% a year earlier.
The average rate on new household loans rose to 4.96% in September, while the average rate on new fixed-term deposits reached 3.39%.
The article linked the changes to Bank of Korea policy-rate increases and banks competing for deposits.
- Who
- South Korean bank depositors and household borrowers.
- What
- Higher-rate fixed-term deposits became more common, while lower-rate household loans shrank.
- When
- September 2026 data, reported on November 1, 2026.
- Where
- South Korea.
- Why
- The article attributed the changes to Bank of Korea rate increases and banks raising deposit rates amid competition for deposits.
This story does not have two clearly opposing sides.
The Bank of Korea raised its policy rate in consecutive months.
The share of new fixed-term deposits paying at least 4% reached 10.6%, while the share of new household loans below 4% fell to 9.6%.
경기일보 reported the September weighted-average interest-rate figures.
- New fixed-term deposits at 4% or more
- 10.6% in September, up from 0.5% in August
- New fixed-term deposits at 3% to below 4%
- 70.8% in September
- Average rate on new fixed-term deposits
- 3.39% in September
- New household loans below 4%
- 9.6% in September, down from 57.6% a year earlier
- Average rate on new household loans
- 4.96% in September
- New household loans at 5% or more
- 31.6% in September, up from 7.2% a year earlier