This paper investigates the pattern of credit allocation in Korea for the period after the 1997 crisis, using firm-level micro data. In particular, unlike existing studies on this issue, this paper examines the lending interest rate as well as the magnitude of bank credit and their relationship with the default risk. Our estimation results show that there is no strong relationship between the magnitude of bank credit and the default risk. Also, the relationship between bank credit and the default risk is not substantially different between the pre-crisis and the post-crisis periods. These results contrast with those of previous studies that report improved efficiency of credit allocation in the post-crisis period. The interest rate, on the other hand, is significantly positively correlated with firm default risk. This suggests that, for a proper evaluation of the credit allocation pattern, one needs to consider both the magnitude of credit and the interest rate.