Expected BOK rate hike prompts concern over rising interest burdens on households, firms - The Korea Times

An advertisement for mortgage loans is seen at a commercial bank in Seoul, May 31.

Yonhap Expectations of imminent interest rate hikes by the Bank of Korea (BOK) are adding to pressure on households and businesses already struggling with rising borrowing costs, analysts said Sunday.

Lending rates at major banks have continued to climb as BOK Gov.

Shin Hyun-song struck a hawkish tone following a Monetary Policy Board meeting on May 28, reinforcing market expectations that the central bank could begin raising rates as early as July.

According to banking industry data, fixed-rate mortgage loans offered by the country's five major lenders — KB Kookmin, Shinhan, Hana, Woori and NH NongHyup — carried interest rates ranging from 4.39 percent to 7.33 percent as of Friday.