Bank of Korea: Higher interest rates put households that have reached the limit of borrowing at risk, and credit risk is more likely to spread within households. This is a significant increase considering the actual delinquency rate of existing homeowners at the end of last year. For these households, for every 1 percentage point increase in interest rates, the probability of delinquent on loans increases by 0.81 percentage points.

Bank of Korea: Higher interest rates put households that have reached the limit of borrowing at risk, and credit risk is more likely to spread within households. This is a significant increase considering the actual delinquency rate of existing homeowners at the end of last year. For these households, for every 1 percentage point increase in interest rates, the probability of delinquent on loans increases by 0.81 percentage points.