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South Korean bank loan delinquency rates hit 10-year high
South Korean domestic bank loan delinquency rates reached 0.69% in August, the highest level in nine years and ten months. According to the Financial Supervisory Service, this marks an increase from 0.63% in the previous month and 0.61% in August of the previous year.
Delinquency rates rose across corporate and household sectors. Corporate loan delinquency reached 0.86%, driven by increases in both large enterprise (0.39%) and small-to-medium enterprise (1.00%) loans. Household loan delinquency rose to 0.45%, with non-mortgage loans (such as credit loans) hitting 0.91%.
The rise is attributed to the prolonged period of high interest rates and the inclusion of new non-performing loans following workout and rehabilitation filings by affiliates of the JoongAng Group in July. While new delinquencies totaled 3 trillion won in August, the scale of delinquent debt disposal was 1.5 trillion won.
The Financial Supervisory Service noted that while rates are rising among vulnerable sectors like small businesses and individual entrepreneurs, the current level remains below the 10-year long-term average of 0.78%, suggesting the situation is manageable in the medium to long term.
Entities
Financial Supervisory Service · JoongAng Group · South Korea
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 2 SOURCES] The 0.69% delinquency rate is the highest since October 2016. www.womennews.co.kr · www.seoul.co.kr
- [● 2 SOURCES] The current delinquency rate is below the 10-year long-term average of 0.78%. www.womennews.co.kr · www.seoul.co.kr
- [● 2 SOURCES] Corporate loan delinquency rates rose to 0.86%. www.womennews.co.kr · www.seoul.co.kr
- [● 2 SOURCES] Household loan delinquency rates rose to 0.45%. www.womennews.co.kr · www.seoul.co.kr
- [○ 1 SOURCE] New delinquency amounts in August totaled 3 trillion won. www.womennews.co.kr
- [● 2 SOURCES] Domestic bank won-denominated loan delinquency rates reached 0.69% in August. www.womennews.co.kr · www.seoul.co.kr
- [● 2 SOURCES] Small and medium enterprise (SME) loan delinquency rates reached 1.00%. www.womennews.co.kr · www.seoul.co.kr
- [● 2 SOURCES] Non-mortgage household loan delinquency rates reached 0.91%. www.womennews.co.kr · www.seoul.co.kr