Bank Delinquency Rate at 0.38% at End of Last Year... Up 0.13%p from Previous Year

At the end of last year, the delinquency rate of domestic banks was found to have increased compared to the previous year.

Despite high interest rates, household debt has risen to a record high as mortgage loans increased by more than 15 trillion won. On the 21st, a banner related to apartment group loans was hung at a commercial bank in Gangnam-gu, Seoul. Photo by Jinhyung Kang aymsdream@

On the 22nd, the Financial Supervisory Service announced that as of the end of December last year, the delinquency rate on won-denominated loans at domestic banks was 0.38%, up 0.13 percentage points (p) from the previous year. The new delinquency rate also rose by 0.03 percentage points to 0.10% compared to 0.07% the previous year.

By sector, corporate loans showed a delinquency rate of 0.41%, up 0.14 percentage points from 0.27% at the end of the previous year. Large corporate loans increased by 0.07 percentage points to 0.12%, while small and medium-sized enterprise (SME) loans rose by 0.16 percentage points to 0.48%. Delinquency rates for small corporations and individual business owner loans increased by 0.12 percentage points and 0.22 percentage points, respectively, reaching 0.48%.

Household loans rose by 0.11 percentage points to 0.35% compared to 0.24% at the end of the previous year. Mortgage loans increased by 0.08 percentage points to 0.23%, while household loans excluding mortgage loans rose by 0.20 percentage points to 0.66%.

The Financial Supervisory Service stated, "We plan to manage by expanding the cleanup of delinquencies and non-performing loans and encouraging sufficient provisioning for loan losses to enhance loss absorption capacity."