One-year corporate deposit rates at major South Korean banks have moved above 4%, raising bank funding costs and adding pressure to lending rates that were already climbing in August. Woori Bank lifted the one-year rate on its WON Corporate Time Deposit to 4.09%, up 0.44 percentage points from end-August and 1.12 percentage points since May. NH NongHyup Bank offers 3.81% on its one-year Corporate e-Time Deposit, up 1.2 percentage points this year, while Shinhan Bank's comparable rate is 3.73%. Personal time-deposit rates remain near 3.5%. Corporate clients account for about 80% of banks' total deposits, making corporate deposit pricing an important funding-cost measure. Five-year unsecured AAA-rated financial debentures, another bank funding source, reached 4.65% on Sept. 15, the year's high. Higher global yields have added to the pressure, with the U.S. 30-year Treasury yield reaching its highest level in 24 years and the 10-year yield touching 5.293%. Bank lending rates had already risen broadly in August. The average rate on newly extended loans increased to 4.40%, household loan rates reached 4.76%, and corporate loan rates rose to 4.30%. The weighted average mortgage rate on newly extended loans climbed 0.18 percentage points to 4.66%, its highest level since November 2022. Market watchers expect lending rates to remain under upward pressure as deposit and market funding costs rise, while the Bank of Korea is seen as possibly raising its policy rate again this year.