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.

Toss Bank said on March 10 it will participate with Seoul and the Seoul Credit Guarantee Foundation in the third round of the Seoul \'reassurance account\' programme, expanding guarantee-backed credit line loans for self-employed business owners in Seoul. The programme begins on March 19 and involves eight banks with a total size of 200 billion won. Toss Bank offers a credit line of up to 10 million won, with a 90 percent guarantee ratio and an annual guarantee fee rate of 1.0 percent.