South Korea's Five Major Banks Exceed Annual Lending Targets; Mortgage Rates Near 7.5% on July 16

According to financial sources, South Korea's central bank raised its key rate by 0.25 percentage points to 2.75% on July 16, signaling further hikes ahead. The move prompted the country's five major banks—KB Kookmin, Shinhan, Hana, Woori, and NH Nonghyup—to tighten household lending as they have already exceeded their annual lending target of approximately 4.34 trillion Korean won, reaching 649.66 trillion won as of July 15.

Major banks restricted new mortgage approvals by lowering loan limits and tightening mortgage insurance requirements. Mortgage rates with fixed terms rose sharply, climbing from 3.93–6.23% at year-end 2025 to 4.77–7.49% by July 16, with top-tier rates nearing 7.5% for the first time since April 2022. Market forecasts suggest additional rate hikes in August or October.