Gwangju and Jeonbuk Banks report highest household loan rates

Gwangju Bank and Jeonbuk Bank have recorded the highest household loan interest rates among 17 commercial and regional banks in South Korea, according to data from the Korea Federation of Banks for August.

Jeonbuk Bank reported the highest average rate at 11.46%, followed by Gwangju Bank at 7.84%. These rates are significantly higher than other regional banks, such as BNK Busan Bank (4.57%), Jeju Bank (5.31%), and BNK Kyongnam Bank (5.32%). They also exceed the rates of major commercial banks like Hana Bank and IBK Industrial Bank, which averaged around 4.69%.

Representatives from Gwangju Bank attributed the higher average rates to elevated funding costs and an increased volume of loans provided to low-credit borrowers.