Key Facts
- Hangul: 이자 (ija)
- Meaning: interest (on money)
- Part of speech: noun
- Origin: Sino-Korean
- Register: neutral; used for interest on savings or loans
- Hanja: 利子 (利 profit + 子 suffix)
- Level: B1
Interest in Korean: What Does 이자 Mean?
이자 is the extra money paid for lending or earned for saving. It appears wherever people talk about accounts and borrowing. Two related terms mark its edges: 금리 is the rate, more technical than 이자, and 원금 is the principal, the original amount before interest. In English the word interest also means curiosity, but 이자 never does. For interest in a subject you need a different word, 관심.
How Do You Pronounce 이자?
이자 is two short syllables, i-ja, romanized ija. Careful: 의자 (uija, chair) sounds close, so the first vowel is what separates them. 이자 starts with a plain i, while 의자 opens with the glide ui. Before a vowel marker the word is smooth: 이자가 is ijaga.
How Do You Use 이자 in a Sentence?
은행 이자가 낮아요.
Bank interest is low.
eunhaeng ijaga najayo. 은행 이자가 낮아요 says bank interest is low. 은행 is bank, 낮아요 is low, and 가 marks 이자 as the subject of the description.
대출 이자를 내야 해요.
I have to pay loan interest.
daechul ijareul naeya haeyo. 대출 이자를 내야 해요 says you must pay loan interest. 내다 is to pay, and 야 해요 adds must. The phrase 대출 이자 joins two money words directly.
이자가 높아서 걱정이에요.
I am worried because the interest is high.
ijaga nopaseo geokjeongieyo. 이자가 높아서 걱정이에요 gives a reason: because the interest is high, I am worried. 높아서 means because it is high, and 걱정이에요 means it is a worry.
Common Word Combinations
| Korean | English |
|---|---|
| 이자를 내다 | to pay interest |
| 이자가 붙다 | interest accrues |
| 이자율 | interest rate |
| 높은 이자 | high interest |
이자를 내다 is to pay interest, and 이자가 붙다 means interest accrues, in the same way a fee attaches. 이자율 is the interest rate, built by adding 율 (rate) to 이자. 높은 이자 is high interest and works as a simple adjective plus noun pair.
Common Mistake
Mix-up: Using 이자 for interest in a subject, as in a hobby.
Instead: Say 관심 for interest in a subject. 이자 is only money interest. Also keep it apart from 의자, the chair.
The two differ only in the first vowel, so listen for it; the spelling always shows the difference.
How Does 이자 Differ from Similar Words?
| Word | Meaning | How it differs from 이자 |
|---|---|---|
| 금리 | interest rate | The rate itself, more technical than 이자. |
| 원금 | principal | The original amount before interest is added. |
Asking about a Savings Account
A customer asks a bank employee about when interest is paid. The exchange practises the difference between receiving interest and paying it on borrowed money.
Customer
이자는 언제 받아요?
ijaneun eonje badayo?
When do I receive the interest?
Employee
만기에 받아요.
mangie badayo.
You receive it at maturity.
Customer
원금도 같이 받아요?
wongeumdo gachi badayo?
Do I receive the principal at the same time?
Employee
네, 원금과 이자를 같이 받아요.
ne, wongeumgwa ijareul gachi badayo.
Yes, you receive the principal and interest together.
만기 is maturity, the point when the agreed term ends. This employee describes the account in the scene; other products can have different payment schedules. 원금과 이자 separates the original deposit from the extra money earned, even when both arrive in the same payment.
Where Will You See 이자?
Banking apps, account descriptions and loan statements use 이자. In a savings context, the customer receives it. In a loan context, the borrower pays it. The same noun works on both sides, so identify who has lent the money and who has borrowed it before interpreting the sentence.
In a shop, 무이자 할부 means interest-free installments. 무- adds the idea “without”, and 할부 means paying in installments. The phrase concerns interest on that payment arrangement. It does not mean the item itself is free or that every other condition has disappeared.
In everyday money talk, 이자가 높다 and 이자가 낮다 can describe interest as high or low. When exact percentages matter, 금리 or 이자율 identifies the rate more clearly. A sentence about a large interest payment and a sentence about a high rate are related, but they answer different questions.
How Do Interest Phrases Change the Direction of Payment?
이자를 받다 means to receive interest, while 이자를 내다 means to pay it. Keep the verb with the noun when learning either expression. A saver talking about receiving money and a borrower talking about an expense can both begin with 이자를, so the verb provides the crucial difference.
이자가 붙다 literally suggests interest attaching itself. The practical meaning is that interest accrues or is added. 붙다 does not tell you whether that is welcome: interest earned on savings can be positive for the account holder, while interest added to a debt increases what is owed.
원금 means the original sum, and 이자 is the additional amount. For a purely arithmetic example, if the original sum is 100 won and the extra interest is 5 won, the 원금 is 100 and the 이자 is 5. The combined 105 is neither the interest alone nor the principal alone.
Related Words on Banking Screens
| Korean | Meaning | What it identifies |
|---|---|---|
| 예금 | bank deposit | Money placed with a bank. |
| 대출 | loan | Borrowed money that can carry interest. |
| 만기 | maturity | The end of an agreed deposit or loan term. |
| 무이자 | interest-free | An arrangement with no interest charge. |
The money vocabulary lesson groups banking terms with other everyday money words. On a screen showing both a rate and an amount, look at the units: a percentage expresses a rate, while a sum in won expresses money.
Quick Self-Test
- Which phrase describes the borrower paying: 이자를 받다 or 이자를 내다?
- Does 무이자 mean the purchased item costs nothing?
- In the 100-won plus 5-won example, which amount is 원금?
Show answers
- 이자를 내다 means to pay interest.
- No. It means no interest; the purchase still has a price.
- The original 100 won is 원금. The additional 5 won is 이자.
Frequently Asked Questions
What Does 이자 Mean?
It means interest on money, such as on savings or a loan.
Can 이자 Mean Interest in a Hobby?
No. For interest in a subject use 관심.
What Is the Difference between 이자 and 금리?
금리 is the rate, which is more technical. 이자 is the money paid or earned.
How Do I Say the Interest Rate?
Say 이자율. It adds 율, meaning rate, to 이자.
Where to Go Next
For related money words, open the money vocabulary list or browse Korean words A to Z. Next, see loan, and review the set in the vocabulary flashcard decks.