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Finance

Credit loans post biggest rise in about five years as rate hikes add to borrowers\' burden

South Korean credit loans rose by the most in about five years in May, led by increases in overdraft-style minus-account borrowing, as higher lending rates raise concerns over the interest burden for borrowers investing with debt. Market expectations of a policy rate hike have grown after Bank of Korea Governor Shin Hyun-song publicly cited the need to raise rates at an appropriate time. Bank bond yields that influence loan pricing have climbed, pushing credit loan rates above 6 percent.

Finance

Bank of Korea Governor Shin says case for rate hike clear, tightening at right time

Bank of Korea Governor Hyun Song Shin (신현송) signalled a strong possibility of raising the benchmark interest rate, citing continued inflation pressure and more resilient growth than expected. The central bank held its policy rate at 2.50 percent. Shin said inflation is likely to stay above target for some time and growth is improving. He said the timing and pace of any hike will be decided after a comprehensive review of inflation, the economy and financial stability.

Finance

BOK holds base rate at 2.50 percent, raises growth forecast to 2.6 percent amid Middle East risks

The Bank of Korea\'s Monetary Policy Board kept the base rate unchanged at 2.50 percent, citing heightened inflation pressure from the fallout of the war in the Middle East but noting high uncertainty. The board raised its 2026 growth forecast to 2.6 percent from 2.0 percent on strong semiconductor-led exports, expanding investment and solid consumption. It projected consumer inflation at 2.7 percent and core inflation at 2.4 percent.