Bank of Korea reports increase in new deposit and loan rates
The Bank of Korea reported that the average interest rate on new deposits increased by 9 basis points to 2.90 percent in December 2025. Concurrently, the average interest rate on new loans rose by 4 basis points to 4.19 percent.
New deposit and loan rates climb
In December 2025, the average interest rate on new deposits at commercial and specialized banks increased by 9 basis points, reaching 2.90 percent.
This upward movement follows a similar trend from the previous month.
Concurrently, the average interest rate on new loans also rose by 4 basis points, settling at 4.19 percent.
These figures reflect the current lending and deposit interest rates faced by households and corporations in new agreements.
Outstanding balances show minor shifts
For outstanding amounts, the average interest rate on deposits decreased marginally by 2 basis points to 2.00 percent as of end-December.
In contrast, the average interest rate on outstanding loans saw a slight increase of 2 basis points, reaching 4.23 percent.
These rates represent the weighted averages applied to the stock of all deposits and loans, offering insights into bank profitability and the overall interest burden on existing financial commitments.
Mixed signals for economic outlook
The divergent trends in new and outstanding rates present a nuanced picture for the economy.
While rising new loan rates could temper future credit demand, the stability in outstanding rates offers some relief for existing borrowers.
This data underscores the Bank of Korea's ongoing challenge in balancing inflation control with economic growth support.
Source: Interest Rates (Dec 2025)
IN: