Insurance Company Delinquency Rate Surges to 0.83% in Q2 Amid Homeplus Fallout

Loan Balance at 265.4 Trillion Won, Down 2.4 Trillion Won from Previous Quarter
Non-Performing Loan Ratio at 1%, Up 0.08 Percentage Points from Previous Quarter

In the second quarter, the outstanding balance of loans held by insurance companies decreased compared to the previous quarter, but the delinquency rate surged. This was due to the inclusion of Homeplus loan receivables.

According to the "Status of Insurance Company Loan Receivables as of the End of June 2025" announced by the Financial Supervisory Service on August 25, the outstanding balance of insurance company loans stood at 265.4 trillion won, down 2.4 trillion won from the previous quarter. During this period, household loans decreased by 500 billion won to 134.4 trillion won, while corporate loans fell by 1.9 trillion won to 131 trillion won.

Among household loans, policy loans amounted to 70.3 trillion won, a decrease of 400 billion won from the previous quarter. Mortgage loans increased by 100 billion won to 52.3 trillion won. Among corporate loans, loans to large enterprises dropped by 1.1 trillion won to 45.3 trillion won, and loans to small and medium-sized enterprises decreased by 900 billion won to 85.6 trillion won.

The loan delinquency rate rose by 0.17 percentage points from the previous quarter to 0.83%. The household loan delinquency rate increased by 0.01 percentage points to 0.8%, while the corporate loan delinquency rate surged by 0.25 percentage points to 0.85%. For corporate loans, the delinquency rate rose sharply as Homeplus loan receivables were classified as delinquent (over one month) starting from the second quarter.

The non-performing loan ratio increased by 0.08 percentage points from the previous quarter to 1%.

An official from the Financial Supervisory Service stated, "The upward trend in insurance company loan delinquency rates continues due to the delayed economic recovery and the occurrence of specific Homeplus delinquencies," adding, "We will guide insurance companies to strengthen their loss-absorbing capacity and enhance risk management in preparation for potential increases in delinquencies and non-performing loans in the future."