In April, the delinquency rate for domestic banks' won-denominated loans increased to 0.61%, influenced by a rise in new delinquencies and a decrease in the resolution of delinquent loans.
According to a report released by the Financial Supervisory Service on June 18, the delinquency rate, defined as loans overdue by more than one month, rose by 0.05 percentage points from March's rate of 0.56%. Compared to the same month last year, when the rate was 0.57%, it increased by 0.04 percentage points.
The delinquency rate had reached a nine-month high of 0.62% in February but fell to 0.56% in March due to an increase in the resolution of non-performing loans. However, it rebounded in April.
In April, the amount of new delinquencies totaled 2.9 trillion won, up 200 billion won from March's 2.7 trillion won, while the resolution of delinquent loans decreased significantly to 1.6 trillion won from 4.3 trillion won the previous month.
By sector, the delinquency rate for corporate loans rose by 0.06 percentage points to 0.74%. Among these, the delinquency rate for small and medium-sized enterprises (SMEs) increased by 0.09 percentage points to 0.9%. The delinquency rate for small corporations rose by 0.1 percentage points to 0.98%, while the rate for individual business loans increased by 0.07 percentage points to 0.78%.
The delinquency rate for large corporate loans remained steady at 0.22%, but it was up 0.09 percentage points from 0.13% in the same month last year.
The delinquency rate for household loans increased to 0.42%, up from 0.40% in March. Within this category, the delinquency rate for mortgage loans rose to 0.3% from 0.29%, while the rate for other household loans, including credit loans, increased by 0.07 percentage points to 0.83%.
The Financial Supervisory Service stated, "Amid ongoing high inflation and exchange rates due to the situation in the Middle East, uncertainties in the domestic and international economy persist, including rising market interest rates. We plan to strengthen monitoring of delinquency rates and new delinquencies and encourage banks to enhance their proactive loss absorption capabilities."
It added, "We will actively support vulnerable borrowers at risk of delinquency through banks' own debt restructuring efforts."
* This article has been translated by AI.
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