According to the Financial Supervisory Service's report on the status of won-denominated loan delinquencies released on June 18, the delinquency rate at the end of April was 0.61%, up 0.05 percentage points from the previous month’s rate of 0.56%. Compared to the same month last year, which was 0.57%, this represents an increase of 0.04 percentage points.
The delinquency rate had peaked at 0.62% in February, the highest in nine months, before dropping 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 reached 2.9 trillion won, an increase of 200 billion won from March’s 2.7 trillion won. Meanwhile, 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 to 0.74%, an increase of 0.06 percentage points from the previous month. The delinquency rate for small and medium-sized enterprise (SME) loans rose to 0.9%, up 0.09 percentage points from March’s 0.81%. Among SMEs, the delinquency rate for small corporations increased by 0.1 percentage points to 0.98%, while the rate for individual business loans rose by 0.07 percentage points to 0.78%.
The delinquency rate for large corporate loans remained unchanged at 0.22%, but it is 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 0.02 percentage points from March’s 0.40%. Within this category, the delinquency rate for mortgage loans rose to 0.3%, an increase of 0.01 percentage points, while the delinquency rate for other household loans, including credit loans, rose by 0.07 percentage points to 0.83%.
The Financial Supervisory Service stated, "With the ongoing impact of high inflation and exchange rates due to the situation in the Middle East, along with rising market interest rates, economic uncertainties persist. We plan to strengthen monitoring of delinquency rates and trends in new delinquencies, and encourage banks to enhance their proactive loss absorption capabilities."
They added, "We will actively support vulnerable borrowers at risk of delinquency through banks' own debt restructuring initiatives."
* This article has been translated by AI.
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