According to the Financial Supervisory Service’s preliminary report released on the 20th on won-denominated loan delinquencies at domestic banks, the delinquency rate at the end of January — based on principal and interest overdue by at least one month — stood at 0.56%, up 0.06 percentage point from 0.5% a month earlier.
The increase reflected a rise in newly delinquent loans and a drop in the amount of delinquent debt resolved.
New delinquencies totaled 2.8 trillion won, up 400 billion won from 2.4 trillion won the previous month. The amount of delinquent loans resolved came to 1.3 trillion won, down 3.8 trillion won from 5.1 trillion won a month earlier. The new delinquency rate rose to 0.11% from 0.10%.
By category, the corporate loan delinquency rate rose to 0.67% from 0.59%, while the household loan delinquency rate increased to 0.42% from 0.38%. For household loans excluding mortgages, including credit loans, the delinquency rate climbed to 0.84% from 0.75%.
Financial authorities said they will continue to encourage banks to strengthen asset quality management, including by selling off nonperforming loans and boosting loss-absorbing capacity, so delinquency rates can be kept at stable levels.
* This article has been translated by AI.
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