October Bank KRW Loan Delinquency Rate at 0.24%... Up 0.03%P from Previous Month

[Asia Economy Reporter Song Hwajeong] At the end of October, the delinquency rate on won-denominated loans at domestic banks rose to 0.24% compared to the previous month.

According to the Financial Supervisory Service on the 15th, the delinquency rate on won-denominated loans at domestic banks at the end of September (based on principal and interest overdue for more than one month) was 0.24%, up 0.03 percentage points (P) from 0.21% at the end of the previous month. Compared to the same month last year, it decreased by 0.01 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-end. The delinquency rate at domestic banks has fluctuated around the 0.2% level since falling to the 0.2% range in June last year.

In October, the amount of newly occurred delinquencies (1.2 trillion won) slightly increased compared to the previous month, while the scale of overdue loan disposals (600 billion won) decreased due to the quarter-end base effect, leading to the rise in the delinquency rate.

By sector, the delinquency rate on corporate loans rose 0.03 percentage points from 0.23% at the end of the previous month to 0.26%. The delinquency rate on large corporate loans increased by 0.02 percentage points from 0.05% to 0.07%. The delinquency rate on small and medium-sized enterprise (SME) loans rose 0.03 percentage points to 0.30%. The delinquency rate for small and medium-sized corporations increased by 0.04 percentage points to 0.37%, and the delinquency rate on loans to individual business owners rose 0.03 percentage points to 0.22%.

The delinquency rate on household loans rose 0.03 percentage points to 0.22%. The delinquency rate on mortgage loans increased by 0.01 percentage points to 0.13%, while the delinquency rate on household loans excluding mortgage loans (such as credit loans) rose 0.06 percentage points to 0.43%.

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