Bank of Korea reports May new loan rate fell to 4.19 percent while new deposit rate rose to 2.93 percent

The Bank of Korea published its May 2026 monetary and financial statistics showing little overall change in weighted average bank interest rates. At commercial and specialized banks, the average rate on new deposits rose by 1 basis point from the previous month to 2.93%, while the average rate on new loans fell by 1 basis point to 4.19%. Rates on outstanding balances both increased by 1 basis point, with deposits at 2.03% and loans at 4.31% at end-May. Within new lending, corporate loan rates eased by 1 basis point to 4.13%, reflecting a 3 basis point decline for small and medium-sized enterprises to 4.15%, while rates for large corporations rose by 1 basis point to 4.10%. New household loan rates increased by 3 basis points to 4.46%. On the deposit side, rates on new savings deposits rose by 1 basis point to 2.88% and rates on new marketable instruments rose by 6 basis points to 3.13%. For outstanding balances, corporate loan rates increased by 1 basis point to 4.25% and household loan rates by 3 basis points to 4.42%, while outstanding savings deposit rates rose by 2 basis points to 2.87%. The Bank of Korea noted that the May figures are preliminary and may be revised if source data are supplemented or changed, or if compilation standards are revised.