Insurance Company Loan Balance at 261.4 Trillion Won in Q3
Down 400 Billion Won from Previous Quarter
Insurance Company Mortgage Loans at 51.9 Trillion Won
Decreased by 400 Billion Won from Previous Quarter
Due to the impact of real estate loan regulations announced by the government in June, mortgage loans from insurance companies have decreased for the first time in a year and a half.
According to the “Status of Insurance Companies’ Loan Receivables as of the end of September 2025,” released by the Financial Supervisory Service on November 25, the balance of loan receivables stood at 261.4 trillion won, down 400 billion won from the previous quarter. During the same period, household loans decreased by 1.1 trillion won to 133.3 trillion won, while corporate loans fell by 300 billion won to 128 trillion won.
Within household loans, the balance of mortgage loans was 51.9 trillion won, a decrease of 400 billion won compared to the previous quarter. This marks the first time since the end of March last year, or in a year and six months, that insurance companies’ mortgage loans have declined quarter-on-quarter. The government’s first real estate policy, the “6·27 Measures,” is believed to have contributed to the reduction in mortgage loans. Policyholder loans, which serve as a financial lifeline for low-income individuals, decreased by 300 billion won to 70 trillion won, while unsecured loans remained unchanged from the previous quarter at 7.9 trillion won.
Among corporate loans, the balance of loans to large corporations dropped sharply by 2.1 trillion won to 43.2 trillion won compared to the previous quarter. During the same period, loans to small and medium-sized enterprises decreased by 900 billion won to 84.7 trillion won.
The delinquency rate of insurance companies’ loan receivables was 0.81%, down 0.02 percentage points from the previous quarter. The delinquency rate for household loans rose by 0.05 percentage points to 0.85%, while the delinquency rate for corporate loans fell by 0.05 percentage points to 0.79%.
The ratio of non-performing loans was 0.98%, a decrease of 0.02 percentage points from the end of the previous quarter. During the same period, the non-performing loan ratio for household loans rose by 0.06 percentage points to 0.67%, while the non-performing loan ratio for corporate loans fell by 0.07 percentage points to 1.13%.
A Financial Supervisory Service official stated, “Although soundness indicators as of the end of September have improved slightly compared to the previous quarter, there are concerns that the soundness of loan receivables could deteriorate due to delayed economic recovery. We will guide insurance companies to strengthen their loss-absorbing capacity and enhance risk management to prepare for potential increases in delinquencies and non-performing loans.”
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