September Bank KRW Loan Delinquency Rate at 0.21%... Down 0.03%P from Previous Month

[Asia Economy Reporter Song Hwajeong] At the end of September, the delinquency rate on won-denominated loans at domestic banks fell to 0.21% compared to the previous month.

According to the Financial Supervisory Service on the 16th, the delinquency rate on won-denominated loans at domestic banks at the end of August (based on principal and interest overdue for more than one month) was 0.21%, down 0.03 percentage points (P) from 0.24% at the end of the previous month. Compared to the same month last year, it decreased by 0.02 percentage points. The delinquency rate tends to rise during the quarter and fall at the end of the quarter as banks strengthen management of overdue loans at the end of each quarter. The delinquency rate at domestic banks has fluctuated around the 0.2% level since it dropped to the 0.2% range in June last year.

The amount of new delinquencies in September (1.1 trillion won) remained at the same level as the previous month, but the amount of overdue loan disposals (1.7 trillion won) increased by 1 trillion won compared to the previous month.

By sector, the delinquency rate on corporate loans fell by 0.04 percentage points to 0.23% from 0.27% at the end of the previous month. The delinquency rate on large corporate loans dropped by 0.07 percentage points to 0.05% from 0.13% at the end of the previous month. The delinquency rate on small and medium-sized enterprise loans fell by 0.03 percentage points to 0.27% compared to the previous month. The delinquency rate for small and medium-sized corporations decreased by 0.05 percentage points to 0.33%, and the delinquency rate on loans to individual business owners fell by 0.01 percentage points to 0.19%.

The delinquency rate on household loans fell by 0.01 percentage points to 0.19% compared to the previous month. The delinquency rate on mortgage loans remained at a similar level of 0.12% as the previous month. The delinquency rate on household loans excluding mortgage loans (such as credit loans) decreased by 0.05 percentage points to 0.37%.

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