The average interest rate on home equity loans from the top five Korean banks in June was 3.27%, the highest since 2019. Banks are maintaining high interest rate margins to manage the total amount of household loans. Factors such as operating costs, legal expenses, and risk premiums are reflected in the calculation of the interest rate margin. NH NongHyup Bank had the highest interest rate margin at 3.93%, followed by Hana Bank, Woori Bank, KB Kookmin Bank, and Shinhan Bank. The difference between loan and deposit interest rates has decreased somewhat due to the rise in deposit interest rates.
