April Bank KRW Loan Delinquency Rate at 0.23%... Up 0.02%P from Previous Month

by Song Hwajung

Published 16 Jun.2022 12:00(KST)

April Bank KRW Loan Delinquency Rate at 0.23%... Up 0.02%P from Previous Month

[Asia Economy Reporter Song Hwajeong] At the end of April, the delinquency rate on won-denominated loans at domestic banks slightly increased to 0.23% after a month.

According to the Financial Supervisory Service on the 16th, the delinquency rate on won-denominated loans at domestic banks at the end of April (based on principal and interest overdue for more than one month) was 0.23%, up 0.02 percentage points from 0.22% at the end of the previous month. Compared to the same period last year, it decreased by 0.07 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 slightly around the 0.2% level since it dropped to the 0.2% range in June last year.

The amount of newly occurred delinquencies in April was 900 billion KRW, an increase of 100 billion KRW compared to the previous month, while the amount of overdue loan settlements was 500 billion KRW, a decrease of 900 billion KRW compared to the previous month.

By sector, the delinquency rate on corporate loans rose 0.02 percentage points to 0.28% from 0.26% at the end of the previous month. The delinquency rate on large corporate loans remained at 0.22%, the same level as the previous month. The delinquency rate on small and medium-sized enterprise loans increased by 0.02 percentage points to 0.29%, the delinquency rate on small and medium-sized corporations rose by 0.02 percentage points to 0.37%, and the delinquency rate on individual business loans increased by 0.02 percentage points to 0.19%, respectively.

The delinquency rate on household loans rose by 0.01 percentage points to 0.18% compared to the previous month. The delinquency rate on mortgage loans increased by 0.01 percentage points to 0.11%, and the delinquency rate on household loans excluding mortgage loans (such as credit loans) rose by 0.04 percentage points to 0.35%, respectively.