South Korean substandard or below loans unchanged in Q2

Total SBLs of KRW16.6t was also unchanged from three months prior.

South Korean domestic banks’ ratio of loans classified as substandard or below (SBLs) to the total outstanding loans remained at 0.59% at end-June 2025.

The ratio was unchanged from three months ago, according to the Financial Supervisory Service (FSS).

The total SBLs at KRW16.6t was also unchanged from three months past, the FSS said.

Business clones classified as SBLs came in at KRW13.1t. The ratio of business loans classified as SBLS is at 0.72% for the Q2 period, unchanged from Q1.

Household loans and credit card receivables and loans classified as SBLs amounted to KRW3.2t and KRW0.3t, respectively as of end-June.

Ratio of SBLs for household loans is unchanged at 0.32% in Q2 from Q1 2025.