South Korean banks raised the average interest rate on new household mortgage loans in May, reversing a downward trend from the previous month.
Central bank data released Friday showed the average rate on new bank loans stood at 4.19%, driven by rising market interest rates.
The rebound marks a shift in the domestic credit environment, where borrowers had briefly seen easing conditions.
The increase reflects the transmission of higher wholesale funding costs to retail lending products, complicating the outlook for housing affordability and consumer spending in the world's 13th-largest economy.
While the UK market is currently focused on potential rate reductions following steady inflation data, South Korea's trajectory highlights the divergent paths of global monetary policy.
The Bank of Korea's stance continues to influence local lending dynamics, with market participants monitoring whether this uptick signals a sustained reversal or a temporary fluctuation.