Photo by Markus Winkler via Unsplash.

South Korean banks’ bad loans ratio up in October

The proportion of bad loans rose whilst resolved loans decreased by around US$1.29b.

The delinquency rate of South Korean domestic banks’ won-denominated (WD) loans rose to 0.43% as of end-October, according to data released by the Financial Supervisory Service (FSS) in December 2023.

This is 0.04 percentage point (ppt) higher than September, and 0.19 ppt higher than in October 2022, the FSS said.

The delinquency rate is classified as the percentage of loans with principal of interest payment past due by at least one month.

The delinquency rate of loans to large companies rose to 0.19% in October, from only 0.14% in September.

ALSO READ: Korean central bank inks deal to develop system for testing CBDCs

The rate of loans to SMEs rose to 0.55%, 0.06ppt higher than 0.49% a month earlier.

When it came to household loans, the delinquency rate was 0.37% by end-October, up 0.02 ppt from a month earlier, the FSS said.

The volume of resolved loans decreased by approximately US$1.29b (KRW1.7) between September and October, whilst that of newly delinquent loans grew approximately US$759m (KRW0.2t).

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!