New Delinquency Rate Down 0.03%p
Corporate Loan Delinquency Rate Down 0.17%p
Household Loan Delinquency Rate Down 0.06%p
As of the end of June this year, the delinquency rate for Korean won-denominated loans at domestic banks stood at 0.52%, marking a decrease from the previous month. This was largely due to declines in both corporate and household loan delinquency rates.
According to the "Status of Delinquency Rates on Korean Won-Denominated Loans at Domestic Banks as of the End of June 2025 (Provisional)," released by the Financial Supervisory Service on the 29th, the delinquency rate (based on loans overdue by more than one month) at the end of June 2025 was 0.52%. This represents a decrease of 0.12 percentage points from the end of the previous month (0.64%), but an increase of 0.10 percentage points compared to the end of the same month last year (0.42%).
The amount of newly delinquent loans in June was 2.8 trillion won, down 700 billion won from the previous month (3.5 trillion won). The amount of resolved delinquent loans was 5.7 trillion won, a sharp increase of 4 trillion won compared to the previous month (1.7 trillion won).
During the same period, the new delinquency rate was 0.11%, a decrease of 0.03 percentage points from the previous month (0.14%).
By sector, the corporate loan delinquency rate during the same period was 0.60%, down 0.17 percentage points from the end of the previous month (0.77%).
The delinquency rate for large corporate loans was 0.14%, a decrease of 0.01 percentage points from the end of the previous month (0.15%). The delinquency rates for small and medium-sized enterprise loans and small business corporations fell by 0.21 percentage points and 0.24 percentage points, respectively, to 0.74% and 0.79%.
The household loan delinquency rate was 0.41%, down 0.06 percentage points from the end of the previous month (0.47%). The mortgage loan delinquency rate recorded 0.41%, a decrease of 0.06 percentage points from the end of the previous month (0.47%). Excluding mortgage loans, the delinquency rate for household loans was 0.78%, down 0.16 percentage points from the end of the previous month (0.94%).
The Financial Supervisory Service stated, "In preparation for the potential increase in delinquencies and non-performing loans, we will strengthen monitoring, particularly focusing on vulnerable sectors where delinquency rates have recently been rising, and encourage banks to maintain sufficient loss-absorbing capacity. In addition, we will guide banks with high delinquency rates to strengthen asset soundness management through measures such as the sale and disposal of delinquent and non-performing loans."
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