Bank lending rates for new loans in South Korea dropped to a record low last month, with the pace of decline slightly slowing from October, central bank data showed Tuesday.
   
The average rate for new loans to households, companies and other organizations reached 3.88 percent in November, down 0.12 percentage point from the previous month, according to the Bank of Korea (BOK). It marks the lowest level since the central bank began compiling the data in 1996.
  
In October, the figure slumped 0.14 percentage point on-month, marking the steepest decline since August this year when the average rate for such loans tumbled 0.18 percentage point.
   
By category, the average lending rate for corporate loans fell
0.12 percentage point to 4.02 percent, while that for households fell 0.09 percentage point to 3.55 percent.
   
The average deposit rate also fell 0.08 percentage point over the cited period to 2.1 percent.
   
The data comes as borrowing costs in South Korea have been trending lower in line with two rate cuts earlier this year. The central bank cut the policy rate by a quarter percentage point each in August and October in efforts to boost growth.
   
The base rate currently stands at a record low of 2 percent.

The next policy decision is set for Jan. 15. (Yonhap)