Household mortgage lending rates at South Korean banks climbed for a second consecutive month in June, reaching their highest level in two years and seven months.
The data, released by the Bank of Korea on Tuesday, underscores the persistent pressure on borrowers as financial institutions pass on higher funding costs.
6 trillion won ($5.4 billion) in June, marking a sharp acceleration from the previous month.
The rate increase comes amid a notable surge in household borrowing.
Bank loans to individuals rose by 7.6 trillion won ($5.4 billion) in June, marking a sharp acceleration from the previous month.
This uptick was driven primarily by increased mortgage activity, suggesting that demand for housing finance remains resilient despite the rising cost of credit.
The combination of higher rates and growing loan volumes presents a complex challenge for policymakers.