The Bank of Korea to Newly Announce 'Mortgage Loans and Jeonse Deposit Loans' Interest Rates Starting This Month

The Bank of Korea is unveiling the exterior of the newly constructed integrated annex of the Bank of Korea in Jung-gu, Seoul, completed after six years, on the morning of the 27th. Photo by Joint Press Corps

The Bank of Korea has decided to newly disclose interest rates on housing mortgage loans and jeonse deposit loans from deposit banks starting this month.

From the announcement of the "April Financial Institutions Weighted Average Interest Rates" on the 30th, the Bank of Korea announced on the 26th that it will newly disclose ▲fixed and variable housing mortgage loan interest rates and their proportions at deposit banks, ▲jeonse deposit loan interest rates at deposit banks, ▲and interest rates for savings deposits (installment savings, mutual installment savings) with maturities of 1 year or more but less than 2 years at deposit banks.

The fixed and variable housing mortgage loan interest rates and their proportions at deposit banks will be disclosed based on both new loan amounts and outstanding balances.

This is intended to provide necessary information for borrowers' loan decision-making and for the formulation of household debt-related policies. The time series data will be provided monthly from January 2013.

Regarding the new disclosure of jeonse deposit loan interest rates at deposit banks, the Bank of Korea explained that it is "to provide information necessary for understanding the housing rental market situation, etc." The time series data will be provided monthly from January 2015.

Regarding the provision of interest rates for savings deposits with maturities of 1 year or more but less than 2 years at deposit banks, it explained that "this reflects the high proportion of products with maturities of 1 year or more but less than 2 years in installment savings and mutual installment savings at deposit banks."

Interest rates for fixed deposits with maturities between 1 and 2 years are already being disclosed. The time series data has been provided monthly since January 2003.