Highest Level Since November 2016 (0.64%)
New Delinquency Rate Up 0.02 Percentage Points
SME Delinquency Rate Up 0.12 Percentage Points
In May 2025, the delinquency rate for won-denominated loans reached 0.64%. This is the highest level since November 2016, when it also stood at 0.64%. This increase was driven by a rise in the new delinquency rate and the delinquency rate for small and medium-sized enterprises.
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The Financial Supervisory Service announced that as of the end of May, the delinquency rate for won-denominated loans at domestic banks (based on loans overdue by more than one month) was 0.64%, up 0.07 percentage points from the end of the previous month (0.57%).
Previously, as of the end of February, the delinquency rate had reached its highest level in six years and three months due to the impact of resolving overdue loans.
In May 2025, the amount of newly delinquent loans was 3.5 trillion won, an increase of 600 billion won compared to the previous month (2.9 trillion won). The new delinquency rate was 0.14%, up 0.02 percentage points from the previous month.
During May, 1.7 trillion won in overdue loans were resolved, a scale similar to that of April. Generally, banks strengthen their management of overdue loans at the end of each quarter, so delinquency rates tend to rise during the quarter and decline at the end of the quarter.
By sector, the delinquency rate for corporate loans was 0.77%, up 0.09 percentage points from the previous month (0.68%). In particular, the increase in the delinquency rate for small and medium-sized enterprise loans was notable.
The delinquency rate for large corporate loans rose by 0.02 percentage points to 0.15%, while the delinquency rate for small and medium-sized enterprise loans jumped by 0.12 percentage points to 0.95%.
The delinquency rate for household loans also increased by 0.04 percentage points from the end of the previous month, reaching 0.47%. The delinquency rate for mortgage loans rose by 0.02 percentage points to 0.32%. Excluding mortgage loans, the delinquency rate for household loans (such as credit loans) was 0.94%, up 0.08 percentage points.
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