Used-Car Loans at Nearly 20% Interest Double in a Year | October 16 2026 | Finance Daily - 동영상 Dailymotion

Seoul Economic Daily

Episode Description: Rising bond yields are pushing Korea’s capital firms toward higher-rate used-car lending. At KB Capital, loans priced at 16% to 20% made up 23.23% of new used-car lending from June to August, up from 10.06% a year earlier, while Hyundai Capital’s share rose to 8.18% from 3.80% and JB Woori Capital’s to 20.46% from 17.56%. Even borrowers with NICE credit scores above 900 now face minimum rates of 10.0% at JB Woori Capital and 10.7% at Meritz Capital on three-year loans. The driver is funding costs: three-year AA-minus capital bond yields rose to 4.6% as of October 14 from 3.49% at the end of 2025, and the Bank of Korea governor has signaled further rate hikes. We also look at September household loans, which fell 2.2 trillion won (about $1.6 billion), the first net decline since last December.  Sources:  Rates Near 20%: High-Interest Used-Car Loans Double in a Year — Seoul Economic Daily, October 16, 2026 Bad News for Leveraged Homebuyers: Variable Mortgage Rates Rise Again — Seoul Economic Daily, October 16, 2026  About AI PRISM: AI PRISM is Seoul Economic Daily’s WAN-IFRA award-winning newsroom AI series, delivering Korean economic news adapted for global audiences. Episodes are produced with AI assistance and reviewed by a human editor.  Tags: #UsedCarLoans #CapitalFirms #KBCapital #HyundaiCapital #InterestRates #HouseholdDebt #BankOfKorea #KOSPI #AIPRISM #SeoulEconomicDaily #WANIFRA

Transcript

00:02Used car loans near 20% are spreading fast.

00:07At KB Capital, their share has more than doubled,

00:10and some lenders charge top-rated borrowers at least 10%.

00:15It's Friday, October 16th.

00:17Let's break down what's happening in Korea's financial sector.

00:20Capital firms fund themselves with bonds,

00:23and those yields have climbed this year.

00:25Higher funding costs are flowing straight into loan pricing.

00:28Used car loans are heavily used by lower-income borrowers.

00:33Here's what the numbers show.

00:3423.23% of KB Capital's new used car loans this summer carried 16% to 20% rates,

00:42up from 10.06% a year earlier.

00:46Hyundai Capital's share rose to 8.18% from 3.80%.

00:51AA minus three-year capital bonds now yield 4.6%, up from 3.49% at the end of 2025.

01:01Separately, household loans fell 2.2 trillion won in September, about $1.6 billion.

01:08So what does this mean for bank analysts?

01:11Earlier, we said some lenders charge top-rated borrowers at least 10%.

01:15Here's what that actually means for you.

01:18With the central bank signaling more hikes, refinancing could lift those rates further.

01:23Watch the Bank of Korea's next rate move.

01:26Watch whether regulators step in.

01:28And watch capital bond yields as debt rolls over.

01:31That's today's AI Prism, Finance Daily.

01:35This episode was produced with AI assistance based on sole economic daily reporting and reviewed

01:41by a human editor.

01:42AI Prism is a Juan Ifra award-winning series.

01:46We'll be back tomorrow.

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Used-Car Loans at Nearly 20% Interest Double in a Year | October 16 2026 | Finance Daily

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