Bank Delinquency Rate at 0.21% at End of Last Year... Lowest Ever Recorded

(Source: Financial Supervisory Service)

[Asia Economy Reporter Song Hwajeong] At the end of last year, the delinquency rate on won-denominated loans at domestic banks fell to 0.21%, the lowest level ever recorded.

According to the Financial Supervisory Service on the 24th, the delinquency rate on won-denominated loans at domestic banks (based on principal and interest overdue for more than one month) was 0.21% at the end of December last year, down 0.04 percentage points from 0.25% at the end of the previous month. Compared to the same period last year, it decreased by 0.06 percentage points.

The amount of new delinquencies in December last year was 900 billion KRW, similar to the previous month, while the amount of delinquent loans resolved increased to 1.7 trillion KRW from 700 billion KRW in the previous month.

By sector, the delinquency rate for corporate loans was 0.26%, down 0.05 percentage points from 0.31% at the end of the previous month. The delinquency rate for large corporate loans remained similar at 0.24%. The delinquency rate for small and medium-sized enterprise (SME) loans fell 0.06 percentage points to 0.27%, SME corporate delinquency rate dropped 0.08 percentage points to 0.36%, and the delinquency rate for individual business owner loans decreased 0.04 percentage points to 0.16%.

The delinquency rate for household loans was 0.16%, down 0.03 percentage points from the previous month. The delinquency rate for mortgage loans was 0.10%, down 0.01 percentage points, and the delinquency rate for household loans excluding mortgage loans (such as credit loans) fell 0.07 percentage points to 0.29%.

(Source: Financial Supervisory Service)

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