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Korean commercial banks are poised
to cut their interest rates on their clients'
savings deposits, taking the cue form the
rate cuts in mid-May 2004 by the nation's
No. 1 lender Kookmin Bank, which lowered
its interest rate on one-year savings deposits
to an annual 3.8 perecent from 4 percent
on May 11, 2004.
Hana Bank is going
to follow the suite by lowering its interest
rate from the current 4 percent per annuam
by 0.1 or 0.2 percentage pointage point
the following week. Other lenders such as
Chohung Bank and Korea Exchange Bank are
also considering cutting one year savings
deposit rates, according to bank sources.
However, Woori Bank, the nation's second
largest bank, said it would not lower its
rates on savings deposits for the time being,
citing the possibility of a US rate increase
and a rise in South Korea's call rate, its
benchmark short-term interest rate.
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