South Korea's fixed‑rate mortgage share hits 12‑year low as banks raise loan rates

KB Kookmin Bank announced a hike of up to 0.53 percentage points on its major household loan products, including credit, mortgage and lease‑fund loans, effective 31 July. The bank said the move is intended to curb household‑debt growth and keep its credit portfolio stable.

At the same time, the Bank of Korea reported that the weighted average interest rate on new household loans rose to 4.50 % in June, marking a second consecutive month of increase. Within mortgage lending, the share of fixed‑rate loans fell to 37.7 %, the lowest level in more than twelve years, as borrowers opted for cheaper variable‑rate products despite the overall upward trend in rates.