Bank credit loan interest rates in South Korea have risen to between 4.010% and 5.380%, marking a significant increase as the lower end of the rates exceeds 4% for the first time in 14 months. This rise is attributed to various factors, including an increase in the benchmark interest rates for bank bonds, which affects the pricing of credit loans. The increase signifies a broader trend in rising borrowing costs, following a period of lower rates that persisted since December 2024.

While household loans secured against real estate have been on a decline, the demand for unsecured credit loans is growing. This can be partly explained by increased interest in investment opportunities, especially in the stock market. Data shows that the total household loan balance from the largest banks has decreased slightly, but unsecured credit loans have increased, indicating a shift in borrowing behavior among consumers looking to invest.

Bank representatives note that the ongoing expansion of credit loans correlates with the stock market's strong performance, suggesting that investors are leveraging credit for investment despite rising costs. The significant increase in the balance of 'negative account' loans also reflects this trend, underscoring the complex dynamics of consumer credit in the current economic climate.