If the base interest rate rises by 0.5 percentage point, an analysis showed that the household interest burden would increase by nearly 6 trillion won compared to the end of last year.
The interest per capita increased by about 300,000 won, and it was found that the vulnerable groups, such as high-income earners and multi-debtors, were particularly affected.
In its 'Financial Stability Situation' report, the Bank of Korea estimated that if the base interest rate rises by 0.25 percentage points, households' annual interest burden will increase by 2.9 trillion won compared to the end of last year, and by 0.5 percentage points, it will increase by 5.8 trillion won.
The annual interest burden per borrower also jumped by 150,000 won and 300,000 won from 2.71 million won at the end of last year to 2.86 million won and 3.01 million won, respectively.
In particular, the interest rate of the top 30% of income earners with large loans increased by 430,000 won from 3.81 million won to 4.24 million won due to the 0.5 percentage point increase in the base rate, and the interest of vulnerable borrowers also increased by 530,000 won from 3.2 million won to 3.73 million won. soaring.
Looking at the self-employed alone, when the base interest rate rises by 0.25 percentage points and 0.5 percentage points, respectively, the interest burden increases by KRW 1.5 trillion and KRW 2.9 trillion.
In the report, the BOK evaluated, "As a result of examining household and corporate debt repayment burdens and changes in the resilience of financial institutions following the base rate hike, it is at a level that households, corporations and financial institutions can tolerate."
However, in the case of some vulnerable sectors, there is a possibility that the risk of insolvency may increase due to a rise in interest rates and the termination of various financial support measures.