February Bank Loan Delinquency Rate at 0.43%... Rising Delinquency Rates Among SMEs and Self-Employed
[Asia Economy Reporter Kim Hyo-jin] As of the end of February, the delinquency rate on won-denominated loans at domestic banks (principal and interest overdue for more than one month) was 0.43%, an increase of 0.02 percentage points from the end of the previous month (0.41%), the Financial Supervisory Service announced on the 13th.
The amount of new delinquencies reached 1.4 trillion won, exceeding the amount of delinquent loans resolved (900 billion won), resulting in an increase of 500 billion won in the balance of delinquent loans to 7.4 trillion won.
Compared to the delinquency rate at the end of February last year (0.52%), it decreased by 0.09 percentage points.
The delinquency rate for corporate loans was 0.54%, up 0.04 percentage points from the end of the previous month (0.51%).
The delinquency rate for large corporate loans remained unchanged at 0.38% from the end of the previous month. The delinquency rate for small and medium-sized enterprise (SME) loans rose 0.04 percentage points to 0.58% from 0.54% at the end of the previous month.
The delinquency rate for individual business owner loans, mostly self-employed, was 0.35%, up 0.02 percentage points from 0.33% at the end of the previous month, while the delinquency rate for small and medium-sized corporations was 0.77%, up 0.07 percentage points from 0.70% at the end of the previous month.
The delinquency rate for household loans was 0.30%, an increase of 0.01 percentage points from 0.29% at the end of the previous month.
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Among household loans, the delinquency rate for mortgage loans was 0.21%, down 0.02 percentage points from 0.21% at the end of the previous month, while the delinquency rate for household loans excluding mortgage loans, such as unsecured loans, rose 0.04 percentage points to 0.51% from 0.47% at the end of the previous month.
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