S. Korean lending rates hit 7-year high

SEOUL, Nov. 28 (Yonhap) -- South Korean banks' lending rates climbed to a
seven-year high in October as their funding costs expanded amid a credit crunch,
the central bank said Friday.

The average interest rate on new corporate and household loans rose 0.35
percentage point from September to 7.79 percent in October, marking the eighth
consecutive month of increase, according to the BOK.
The October figure was the highest level since the 7.89 percent recorded in June
2001 when the credit market suffered a squeeze amid the collapse of the U.S. IT
industry.
The average lending rate for companies jumped 0.36 percentage point to 7.80
percent in October as companies had difficulties selling their bonds, according
to the BOK.
The average lending rate for households increased 0.32 percentage point to 7.77
percent amid higher mortgage rates.
In the mean time, the average deposit rate rose 0.26 percentage point from the
previous month to 6.31 percent in October, the central bank said.
pbr@yna.co.kr
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