2nd Quarter Insurance Company Loan Claims at 272 Trillion Won... Significant Increase in Real Estate PF Non-Performing Loans

Source: Financial Supervisory Service

[Asia Economy Reporter Changhwan Lee] The Financial Supervisory Service announced on the 14th that as of the end of June, the outstanding loan receivables of domestic insurance companies amounted to 272.4 trillion KRW, an increase of 2.9 trillion KRW compared to the end of the previous quarter.

The increase in loan receivables slightly decreased compared to 3.4 trillion KRW in the previous quarter.

The delinquency rate of insurance companies' loan receivables remained at 0.18%, the same as the previous quarter. The delinquency rate for real estate project financing (PF) loans was 0.33%, higher than corporate loans at 0.15% and household loans at 0.25%.

The ratio of non-performing loans was 0.17%, up 0.04 percentage points from the end of the previous quarter.

The non-performing loan ratio for real estate PF loans rose significantly to 0.33% from 0.05% in the previous quarter.

The Financial Supervisory Service stated that it will continue to conduct on-site inspections related to real estate PF loans and strengthen soundness supervision by supplementing monitoring indicators.

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