Korea Real Interest Rate
Real interest rate FR.INR.RINR
Korea's real interest rate was 2.09% in 2025, ranked 52nd globally. This represents a 229.4% increase from 2024. Data from World Bank, covering 1996–2025.
Overview
Korea's real interest rate stood at 2.09% in 2025, a rise of +1.46pp from 2024. Based on recent trends, this figure is projected to reach 2.09% by 2025. Korea ranked 52nd globally.
South Korea’s real interest rate has fallen sharply over the 30‑year series, declining from an early‑sample high of 6.81 % in 1996 to a pronounced peak of 10.89 % in 1999 before retreating to a historic trough of –0.29 % in 2021. By 2025 the rate stood at 2.09 %, placing the country 52nd in the world and just below peer economies such as St. Lucia (2.21 %) and Belize (2.05 %). The post‑1999 descent reflects a combination of accommodative monetary policy, low inflation and structural reforms that have reduced borrowing costs for households and firms. Although the rate remains modestly positive, the lingering proximity to the negative trough suggests limited room for further easing without risking financial stability. Future movements will likely hinge on inflation dynamics, fiscal policy stance and external interest‑rate shocks, which could either reinforce the current moderate level or prompt a recalibration of monetary conditions.
Data & projection
| Year | Real Interest Rate | YoY change | Rank |
|---|---|---|---|
| 2027* trend | 2.54% | - | - |
| 2026* trend | 2.32% | - | - |
| 2025* trend | 2.09% | - | - |
| 2025 | 2.09% | +1.46pp | #52 |
| 2024 | 0.63% | −2.45pp | #13 |
| 2023 | 3.09% | +0.65pp | #43 |
| 2022 | 2.44% | +2.73pp | #65 |
| 2021 | -0.29% | −1.48pp | #37 |
| 2020 | 1.20% | −2.90pp | #15 |
| 2019 | 4.10% | +1.02pp | #33 |
| 2018 | 3.08% | +1.65pp | #41 |
| 2017 | 1.43% | +0.15pp | #34 |
| 2016 | 1.28% | +0.98pp | #12 |
| 2015 | 0.30% | −2.88pp | #9 |
| 2014 | 3.18% | −0.35pp | #29 |
| 2013 | 3.53% | −0.52pp | #35 |
| 2012 | 4.05% | −0.37pp | #57 |
| 2011 | 4.43% | +1.71pp | #71 |
Detected Pattern
Analysis
Korea matched the Export Boom Cycle pattern in 2006. Historically, 71% of countries showing this pattern (546 out of 768) saw real interest rate improve within 24 months. View full analysis →
Frequently Asked Questions
Korea's real interest rate was 2.09% in 2025. Ranked 52nd globally. This represents a 229.4% increase from the previous year.
Korea's real interest rate peaked at 10.89% in 1999.
The lowest real interest rate in Korea was -0.29% in 2021.
Korea ranks 52nd globally in real interest rate as of 2025.
The World Bank indicator code is FR.INR.RINR. Data sourced from World Bank.
Korea's real interest rate is projected to reach 2.09% by 2025 based on trend extrapolation.
The real interest rate of Korea in 2025 was 2.09%. This ranks 52nd in the world.
Cite this page
@misc{historysaid_korea_real-interest-rate,
title = {Korea Real Interest Rate},
url = {https://historysaid.com/korea/real-interest-rate/},
publisher = {HistorySaid},
year = {2026}
}