Domestic Bank Loan Delinquency Rate Slightly Rises to 0.27% at End of July

[Asia Economy Reporter Park Sun-mi] The delinquency rate for Korean won loans at domestic banks at the end of July (based on principal and interest overdue by more than one month) recorded 0.27%, showing a slight increase compared to the end of the previous month.

On the 16th, the Financial Supervisory Service announced that the delinquency rate for Korean won loans at domestic banks at the end of July was 0.27%, up 0.02 percentage points from 0.25% at the end of the previous month. Although it rose slightly, it is still at the lowest level, down 0.09 percentage points from 0.36% recorded a year ago.

The amount of newly occurred delinquencies in July was 900 billion KRW, an increase of 100 billion KRW compared to the previous month. The amount of delinquent loans resolved was 500 billion KRW, a decrease of 1.6 trillion KRW compared to the previous month.

By borrower type, the delinquency rate for corporate loans rose 0.02 percentage points to 0.35% from 0.32% at the end of the previous month. The delinquency rate for large corporate loans (0.37%) was similar to the previous month, but the increase was mainly due to the delinquency rate for small and medium-sized enterprise loans rising 0.03 percentage points to 0.34%.

During the same period, the delinquency rate for household loans recorded 0.18%, up 0.01 percentage points from 0.17% at the end of the previous month. The delinquency rate for mortgage loans (0.11%) was similar to the previous month, but the delinquency rate for unsecured loans rose 0.03 percentage points to 0.33% from 0.30% at the end of the previous month.

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