The Bank of Korea says a one-percentage-point hike in the loan rate won't burden households and businesses by much, suggesting that it is open to additional rate increases.

According to a report on financial market stability submitted to the National Assembly on Thursday, the central bank said that households and corporate borrowers will be able to afford an increase in debt repayment incurred by a one-percentage-point rise in loan rates, given their income, financial assets and operating profit. 

The bank, however, called for policy efforts to improve the repayment ability of borrowers with high-risk loans from non-bank lenders. 

Last month, the BOK raised the key rate by a quarter of a percentage point to one-point-five percent on the assessment that the economy is on firm footing. It was the first increase in six years and five months.