June Bank KRW Loan Delinquency Rate Drops 0.06%P from Previous Month... Again Hits Record Low

[Asia Economy Reporter Kwangho Lee] In June, the delinquency rate on Korean won loans at domestic banks (based on principal and interest overdue by one month or more) fell compared to the previous month, reaching an all-time low. During the same period, delinquency rates on corporate loans and household loans also declined.

According to the "Status of Korean Won Loan Delinquency Rates at Domestic Banks as of the End of June (Provisional)" released by the Financial Supervisory Service on the 19th, the delinquency rate on Korean won loans at domestic banks stood at 0.25% at the end of June, down 0.06 percentage points from 0.32% at the end of the previous month.

Compared to the same period last year (0.33%), it decreased by 0.08 percentage points.

The amount of newly occurred delinquencies in June (800 billion KRW) decreased by 200 billion KRW compared to the previous month, while the amount of delinquent loans resolved (2.1 trillion KRW) increased by 1.3 trillion KRW from the previous month.

The delinquency rate on corporate loans (0.32%) fell by 0.09 percentage points from 0.41% at the end of the previous month. The delinquency rate on large corporate loans (0.37%) decreased by 0.01 percentage points, and that on small and medium-sized enterprise (SME) loans (0.31%) dropped by 0.11 percentage points.

In particular, the delinquency rate for small and medium-sized corporations (0.42%) declined by 0.15 percentage points from 0.57% at the end of the previous month, and the delinquency rate on loans to individual business owners (0.18%) also fell by 0.06 percentage points.

The delinquency rate on household loans (0.17%) decreased by 0.04 percentage points from 0.20% at the end of the previous month.

The delinquency rate on mortgage loans (0.11%) was similar to 0.12% at the end of the previous month, while the delinquency rate on household loans excluding mortgage loans (such as credit loans) (0.30%) fell by 0.08 percentage points.

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