March Bank KRW Loan Delinquency Rate at 0.22%... Down 0.03%P from Previous Month

[Asia Economy Reporter Song Hwajeong] At the end of March, the delinquency rate on won-denominated loans at domestic banks turned to a downward trend after three months, standing at 0.22%.

According to the Financial Supervisory Service on the 19th, the delinquency rate on won-denominated loans at domestic banks (based on principal and interest overdue by more than one month) was 0.22% at the end of March, down 0.03 percentage points from 0.25% at the end of the previous month. Compared to the same period last year, it decreased by 0.06 percentage points. The delinquency rate typically rises during the quarter and falls at the end of the quarter as banks strengthen management of overdue loans at quarter-end. 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 March was 800 billion KRW, down 100 billion KRW from the previous month, while the amount of resolved delinquent loans was 1.5 trillion KRW, up 900 billion KRW from the previous month.

By sector, the delinquency rate on corporate loans fell by 0.04 percentage points to 0.26% from 0.30% at the end of the previous month. The delinquency rate on large corporate loans remained at 0.23%, the same as the previous month. The delinquency rate on small and medium-sized enterprise (SME) loans dropped by 0.05 percentage points to 0.27%, SME corporate delinquency rate fell by 0.07 percentage points to 0.35%, and the delinquency rate on individual business owner loans decreased by 0.03 percentage points to 0.17%.

The delinquency rate on household loans was 0.17%, down 0.02 percentage points from the previous month. The delinquency rate on mortgage loans was 0.10%, down 0.01 percentage points, while the delinquency rate on household loans excluding mortgage loans (such as unsecured loans) fell by 0.06 percentage points to 0.31%.