Banking Sector Delinquency Rate at 0.25% by End of October... Slight Increase from Previous Month

[Image source=Yonhap News]

[Asia Economy Reporter Kim Jin-ho] The delinquency rate on won-denominated loans at domestic banks has slightly increased.

On the 14th, the Financial Supervisory Service announced that the delinquency rate on won-denominated loans at domestic banks (based on principal and interest overdue by one month or more) stood at 0.25% at the end of October, up 0.01 percentage points from the end of the previous month.

The amount of new delinquencies occurring in October was 900 billion won, an increase of 100 billion won compared to the previous month. During the same period, the amount of delinquent loans resolved was 600 billion won, down 1.1 trillion won from the previous month.

By sector, corporate loans recorded a delinquency rate of 0.30%. Large corporate loans fell by 0.04 percentage points to 0.25% compared to the previous month, but small and medium-sized enterprise loans rose by 0.02 percentage points to 0.32%.

The delinquency rate on household loans was 0.18%, up 0.01 percentage points from the previous month. The delinquency rate on mortgage loans (0.11%) remained at a similar level to the previous month, but the delinquency rate on household loans excluding mortgages (such as credit loans) rose by 0.03 percentage points to 0.33% compared to the previous month.

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