Rising U.S. Treasury yields are lifting market interest rates in South Korea, increasing pressure on vulnerable borrowers and real estate project financing (PF). Five-year fixed-to-floating mortgage rates at KB Kookmin, Shinhan, Hana, Woori and NH NongHyup ranged from 4.89% to 7.29% on the 15th, up from Aug. 27. The five-year financial debenture yield, a key mortgage benchmark, reached a yearly high of 4.578% on the 11th, prompting expectations that the upper mortgage rate could exceed 8%. Korea Investors Service found that 13.1 trillion won of 50 trillion won in PF projects held by domestic securities and capital firms consisted of long-uncollected loans. Insurers and short-term-funded credit card and capital firms also face pressure as rates rise.