The Bank of Korea kept its benchmark interest rate at 3.00 percent, but upward pressure on banks’ lending rates is expected to persist as the impact of earlier hikes feeds into funding costs and the possibility of further increases remains. Some brokerages forecast additional 0.25 percentage point hikes in November and February. COFIX, a key bank funding index, rose sharply in September, which could lift floating-rate mortgage costs and keep borrowers’ interest burdens elevated.

South Korea's parliamentary audit raised concerns that funds are increasingly concentrating in banks while savings banks and mutual finance institutions shrink. Lawmakers also questioned the legal basis and procedures for the financial authorities' household loan volume controls, calling them de facto mandatory rules. Separate inquiries focused on payment inconveniences for foreign tourists, Apple Pay fees and infrastructure costs, and limits on using iPhone NFC for local simple payment services. Authorities said they would review improvements.