South Korean insurance mortgage delinquencies see rise in long-term arrears

Data from the Financial Supervisory Service reveals that long-term mortgage delinquencies are rising within South Korea’s insurance sector. As of the end of June, the total balance of mortgage loans provided by insurers stood at 52 trillion won, with an overall delinquency rate of 0.4%.

While the headline delinquency rate remains relatively low, the quality of the debt is deteriorating. More than half of the total overdue amount (55.8%, or 107.1 billion won) consists of long-term delinquencies exceeding 90 days. This figure has increased significantly from 49.3% at the end of 2022.

There is also a notable disparity in delinquency rates among different insurers. ABL Life Insurance reported a rate of 2.76%, followed by DB Insurance at 2.67%, KDB Life Insurance at 2.33%, and Heungkuk Life Insurance at 2.25%. Representative Park Seong-hun noted that while the industry-wide figures may appear stable, the increasing proportion of long-term arrears and the gap between companies require close monitoring by financial authorities.