Household loan interest rates drop in Korea

Interest rates on household loans provided by South Korean banks have dropped for the fourth month in a row as market rates declined amid a long period of rate freezes. According to a Bank of Korea (BOK) report published by the Korean Central News Agency (KCNA), the average rate for new loans extended to households stood at 5.51% in May, down 0.03 percentage points from the previous month. It marked the lowest level since the rate reached 5.37% in December. The BOK froze the key interest rate at 3.25% for the 12th consecutive month in June in the face of the Eurozone debt crisis and the slowing global economy. The average rate for fresh lending to households and companies declined 0.05 percentage points on-month to 5.66% last month, it added. (QNA)