Last Year, Insurance Company Loans Increased by 11.2 Trillion Won... Delinquency Rate Slightly Decreased

Insurance Companies' Loan Amounts Surge Over 11 Trillion Won Year-on-Year
Corporate Loans Increase by 11.7%...Delinquency Rate Falls by 0.03%p

[Asia Economy Reporter Kim Hyo-jin] Last year, the loan amount of insurance companies increased by more than 11 trillion won compared to the previous year.

According to the "Status of Insurance Company Loan Claims as of December 2019" data released by the Financial Supervisory Service on the 16th, the scale of insurance companies' loan claims as of the end of last year was 234.7 trillion won, an increase of 11.2 trillion won (5.0%) compared to the end of 2018.

Household loans decreased by 700 billion won (0.6%) to 121.1 trillion won, but corporate loans increased by 11.8 trillion won (11.7%) to 113 trillion won.

Among household loans, insurance contract loans increased by 1.1 trillion won (1.7%) to 65.1 trillion won compared to the previous year-end, while mortgage loans decreased by 2.2 trillion won (4.8%) to 44 trillion won.

Among corporate loans, large corporate loans increased by 4.1 trillion won (10.9%) to 41.8 trillion won, and small and medium-sized enterprise loans increased by 7.8 trillion won (12.3%) to 71.2 trillion won.

The delinquency rate (based on principal and interest overdue for more than one month) of insurance company loan claims at the end of last year was 0.26%, down 0.03 percentage points compared to the previous year-end.

The delinquency rates for household loans and corporate loans were 0.57% and 0.11%, respectively, both decreasing by 0.01 percentage points compared to the previous year-end.

The ratio of non-performing loans among insurance company loans was 0.17%, a decrease of 0.10 percentage points compared to the end of last year.

The non-performing loan ratio for household loans was 0.20%, up 0.02 percentage points from the previous year-end, while the non-performing loan ratio for corporate loans was 0.13%, down 0.26 percentage points.

An official from the Financial Supervisory Service said, "We will continue to strengthen monitoring of soundness indicators such as delinquency rates and induce reinforcement of loss absorption capacity through sufficient provisioning for loan losses."

This content was produced with the assistance of AI translation services.