Proportion of banks' fixed-rate household loans surpasses 20% in Jan.

The proportion of banks' fixed-rate household loans exceeded the 20-percent level for the first time in January as a result of the push for a soft landing of household debt problems, the central bank said on March 3.

Banks have increased the proportion of long-term, fixed-rate loans to help reduce the growing household debts.

According to the Bank of Korea (BOK) and financial industry sources, the proportion of banks' fixed-rate household loans accounted for 21.8 percent of home lending in January, the highest since December 2009 when the BOK began compiling related data.

The figure compares with 9.5 percent a year earlier.

By Ayaka Erin Tobari

Park Sae-jin swatchsjp@ajunews.com