Bank Delinquency Rate Rises Again... Small Businesses and Credit Loans Are the Issue

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As of the end of February, the delinquency rate on Korean won loans at domestic banks (based on principal and interest overdue by more than one month) was recorded at 0.36%.

On the 25th, the Financial Supervisory Service announced through the "Status of Korean Won Loan Delinquency Rates at Domestic Banks as of the End of February" that the delinquency rate at the end of February (0.36%) rose by 0.05 percentage points compared to the end of the previous month (0.31%) and increased by 0.11 percentage points compared to the same period last year (0.25%).

The amount of new delinquencies in February was 1.9 trillion KRW, similar to the previous month. The amount of delinquent loans resolved was 800 billion KRW, an increase of 200 billion KRW compared to the previous month.

By segment, as of the end of February, the delinquency rate for corporate loans (0.39%) rose by 0.05 percentage points compared to the end of the previous month (0.34%). In particular, the delinquency rate for small and medium-sized enterprise loans (0.47%) increased by 0.08 percentage points compared to the end of the previous month (0.39%). The delinquency rate for individual business owner loans (0.39%) also rose by 0.06 percentage points compared to the end of the previous month (0.33%).

The delinquency rate for household loans (0.32%) increased by 0.04 percentage points compared to the end of the previous month (0.28%). Especially, the delinquency rate for household loans excluding mortgage loans (such as credit loans) (0.64%) rose by 0.09 percentage points compared to the end of the previous month (0.55%).

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