As of the end of last year, the non-performing loan ratio of domestic banks was recorded at 0.53%.
The Financial Supervisory Service announced the status of non-performing loans for domestic banks as of the end of December 2024. The non-performing loan ratio at the end of last year was 0.53%, up 0.06 percentage points compared to a year earlier (0.47%). During this period, the non-performing loan ratio for corporations rose from 0.59% to 0.65%, while the ratio for households increased from 0.25% to 0.29%.
Comparing the balance of non-performing loans, it increased by 4.7 trillion won, from 10.1 trillion won to 14.8 trillion won over the year. Total loans increased from 2,532 trillion won to 2,799 trillion won.
Compared to the end of the third quarter last year, the non-performing loan ratio remained unchanged. The non-performing loan ratio at the end of the third quarter was 0.53%, with a balance of 14.5 trillion won.
During the fourth quarter, the amount of new non-performing loans exceeded the amount of non-performing loan disposals. Newly created non-performing loans during the fourth quarter amounted to 5.8 trillion won, while disposed non-performing loans totaled 5.6 trillion won.
The FSS stated that as factors such as delays in economic recovery and uncertainties in policies of major countries continue, it will guide institutions to strengthen asset quality management, including buying and selling non-performing loans.