March-End KRW Loan Delinquency Rate at 0.33%
Down 0.03 Percentage Points from Previous Month-End
The delinquency rate for Korean won loans at domestic banks as of the end of March was 0.33%, down 0.03 percentage points from 0.36% at the end of the previous month.
According to the Financial Supervisory Service on the 23rd, the amount of new delinquencies in March (1.7 trillion won) decreased by 200 billion won compared to the previous month. The amount of delinquent loans resolved (2.4 trillion won) increased by 1.6 trillion won from the previous month due to transfers and sales.
The delinquency rate had been on the rise until February this year but turned downward in March. A Financial Supervisory Service official explained, "As banks strengthen management of delinquent loans at the end of the quarter, the delinquency rate typically rises during the quarter and then falls at the quarter-end."
By sector, corporate loans (0.35%) fell 0.04 percentage points from 0.39% at the end of the previous month. The delinquency rate for large corporate loans (0.09%) was similar to 0.09% at the end of the previous month, while the delinquency rate for small and medium-sized enterprise (SME) loans (0.41%) dropped 0.06 percentage points from 0.47% at the end of the previous month.
Among SMEs, the delinquency rate for small and medium-sized corporations (0.45%) decreased 0.07 percentage points from 0.52% at the end of the previous month. The delinquency rate for individual business owner loans (0.37%) fell 0.02 percentage points from 0.39% at the end of the previous month.
The delinquency rate for household loans (0.31%) declined 0.01 percentage points from 0.32% at the end of the previous month. Among these, the delinquency rate for mortgage loans (0.20%) was similar to 0.20% at the end of the previous month, while the delinquency rate for unsecured loans (0.59%) dropped 0.05 percentage points from 0.64% at the end of the previous month.
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