May Bank KRW Loan Delinquency Rate 0.24%... Up 0.01%p from Previous Month
[Asia Economy Reporter Song Hwajeong] At the end of May, the delinquency rate on won-denominated loans by domestic banks showed a slight increase for the second consecutive month, reaching 0.24%.
According to the Financial Supervisory Service on the 15th, the delinquency rate on won-denominated loans by domestic banks at the end of May (based on principal and interest overdue for more than one month) was 0.24%, similar to the level at the end of the previous month (0.23%). Compared to the same period last year, it decreased by 0.08 percentage points. The delinquency rate tends to rise during the quarter as banks strengthen management of overdue loans at the end of the quarter, then decline at the quarter's end. The delinquency rate of domestic banks has fluctuated slightly around the 0.2% level since it fell to the 0.2% range in June last year.
The amount of new delinquencies in May was 1 trillion won, an increase of 100 billion won compared to the previous month, and the amount of overdue loan settlements was 900 billion won, up 300 billion won from the previous month.
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By sector, the delinquency rate on corporate loans was 0.27%, similar to the end of the previous month (0.28%). The delinquency rate on large corporate loans fell by 0.04 percentage points to 0.18% from 0.22% at the end of the previous month. The delinquency rate on small and medium-sized enterprise (SME) loans rose by 0.01 percentage points to 0.29% compared to the previous month. The delinquency rate for small and medium-sized corporations was 0.37%, similar to the previous month, and the delinquency rate on loans to individual business owners increased by 0.01 percentage points to 0.20%.
The delinquency rate on household loans rose by 0.01 percentage points to 0.19% compared to the previous month. The delinquency rate on mortgage loans remained at 0.11%, the same as the previous month. Excluding mortgage loans, the delinquency rate on other household loans (such as credit loans) increased by 0.03 percentage points to 0.38%.
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