Bank Loan Delinquency Rate Slightly Rises at End of October...Both Household and Corporate '↑'
Up 0.04 Percentage Points Compared to the End of Last Month
[Asia Economy Reporter Kim Hyo-jin] The delinquency rate on bank loans slightly increased in October.
According to the Financial Supervisory Service on the 14th, the delinquency rate on won-denominated loans at domestic banks (based on principal and interest overdue for more than one month) stood at 0.34% at the end of October, up 0.04 percentage points from 0.30% at the end of the previous month.
The amount of new delinquencies in October (1.3 trillion won) increased by 300 billion won compared to the previous month, while the amount of delinquent loans resolved decreased by 1.8 trillion won.
The bank loan delinquency rate fell from 0.38% at the end of August to 0.30% at the end of September, marking a record low, but rose again in October.
By borrower type, the delinquency rate on corporate loans rose 0.05 percentage points to 0.42% from 0.37% at the end of the previous month. The delinquency rate on large corporate loans remained unchanged at 0.28%, while that on small and medium-sized enterprise (SME) loans increased 0.06 percentage points to 0.45% from 0.40% at the end of the previous month.
The delinquency rate for small and medium-sized corporations was 0.61%, up 0.09 percentage points from 0.53% at the end of the previous month, and the delinquency rate on loans to individual business owners rose 0.02 percentage points to 0.27% from 0.25% at the end of the previous month.
The delinquency rate on household loans was recorded at 0.23% at the end of October, up 0.02 percentage points from 0.22% at the end of the previous month.
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Among household loans, the delinquency rate on mortgage loans remained unchanged at 0.16% from the previous month. The delinquency rate on credit loans and others excluding mortgage loans increased 0.04 percentage points to 0.40% from 0.36% at the end of the previous month.
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