Household and corporate loan delinquency rates are rising… Delinquency rate of large corporations decreased by 0.06%
A citizen is receiving counseling at a loan counter of a commercial bank in downtown Seoul on March 4. Photo=Newsis
, ‘[Financial News] In May, the delinquency rate for domestic bank loans denominated in Korean won rose for the second consecutive month. In particular, the delinquency rate for individual business owners reached its highest level in 9 years and 6 months.’,
, ‘According to the Financial Supervisory Service on the 16th, as of the end of May, the delinquency rate for domestic bank loans stood at 0.51%, up by 0.03 percentage points from the previous month. Compared to the same period last year (0.40%), the figure increased by 0.11 percentage points.’,
, ‘The delinquency rate for banks hit a record high of 0.51% in February and had been on the rise for 4 years and 9 months. It then declined at the end of March due to sales and charge-offs, rebounded in April, and has been rising for the second consecutive month. ‘,
, ‘Both corporate and household loan delinquency rates increased compared to the previous month.’,
, ‘In May, the delinquency rates for corporate loans and household loans increased by 0.04 and 0.02 percentage points, respectively, to 0.58% and 0.42% from the previous month.’,
, ‘For corporate loans, the delinquency rate for large corporations decreased by 0.06 percentage points to 0.05% from the previous month. However, the delinquency rates for small and medium-sized enterprise loans and individual business owner loans increased by 0.06 and 0.08 percentage points, respectively, to 0.72% and 0.69% from the previous month.’,
, ‘For household loans, the delinquency rate for home mortgage loans increased by 0.01 percentage point to 0.27% from the previous month. Excluding home mortgage loans, the delinquency rate for household loans increased by 0.06 percentage points to 0.85% from the previous month.’,
, ‘In May, the amount of new delinquencies increased by 100 billion won to 2.7 trillion won compared to the previous month (2.6 trillion won). The scale of delinquent receivables increased by 500 billion won to 2 trillion won compared to the previous month.’,
, ‘The new delinquency rate in May (new delinquency occurrence in May / loan balance at the end of April) was 0.12%, the same as the previous month.’,
, ‘The Financial Supervisory Service explained that while the delinquency rates are showing an upward trend, the pace of increase is slowing down. The new delinquency rate remains at 0.12%, and the scale of delinquent receivables is expanding.’,
, ‘The official from the Financial Supervisory Service added, “However, we plan to encourage debt restructuring, delinquent receivables cleanup, and provisioning for bad debts in preparation for the possibility of ongoing rise in delinquency rates among vulnerable borrowers.”‘,
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