May Bank Loan Delinquency Rate at 0.32%... Up 0.01%p YoY

Household Loan (Including Credit Loans) Delinquency Rate at 0.37%... Up 0.04 Percentage Points

[Asia Economy Reporter Park Sun-mi] Amid the prolonged COVID-19 situation, the delinquency rate on Korean won loans at domestic banks at the end of May rose by 0.01 percentage points to 0.32% compared to the end of the previous month. Delinquency rates in both corporate and household sectors increased.

On the 14th, the Financial Supervisory Service announced in the 'Status of Domestic Banks' Korean Won Loan Delinquency Rates (Provisional)' that the delinquency rate on Korean won loans (based on principal and interest overdue for more than one month) in the banking sector at the end of May recorded 0.32%, up 0.01 percentage points from 0.30% at the end of the previous month. The amount of new delinquencies was 1 trillion won, down 100 billion won from the previous month, but the amount of delinquent loan disposals increased by 100 billion won to 700 billion won compared to the previous month.

Looking at the status by borrower, the corporate loan delinquency rate at the end of May was 0.41%, up 0.01 percentage points from 0.40% at the end of the previous month. Although the delinquency rate for large corporate loans (0.38%) fell by 0.01 percentage points, the delinquency rate for small and medium-sized enterprise (SME) loans (0.42%) rose by 0.02 percentage points, which had a significant impact. The delinquency rates for small and medium-sized corporations (0.57%) and individual business owner loans (0.25%) each increased by 0.02 percentage points.

During the same period, the household loan delinquency rate was recorded at 0.20%, up 0.01 percentage points from 0.19% at the end of the previous month. The delinquency rate for mortgage loans (0.12%) was similar to that at the end of the previous month (0.12%), but the delinquency rate for household loans excluding mortgage loans (such as credit loans) rose by 0.04 percentage points to 0.37% from 0.33% at the end of the previous month.

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