At the end of January, the delinquency rate of domestic banks recorded 0.53%.
The Financial Supervisory Service noted that it announced the status of the won-denominated loan delinquency rate for domestic banks at the end of January 2025 on the 28th. The bank delinquency rate rose by 0.09 percentage points from 0.44% at the end of December last year to 0.53% at the end of January this year.
In January, the new amount in arrears was 3.2 trillion won, an increase of 700 billion won compared to 2.5 trillion won the previous month. The scale of delinquent loans, which was 4.3 trillion won in December last year, decreased to 1 trillion won in January this year.
Both the delinquency rates for corporate loans and household loans increased over the past month. The corporate loan delinquency rate rose from 0.50% at the end of December to 0.61% at the end of January. During this period, the household loan delinquency rate increased from 0.38% to 0.43%, rising by 0.05 percentage points.
The FSS said, "The upward trend in the delinquency rate is likely to continue for the time being," and added that it will encourage banks to maintain sufficient loss absorption capacity in preparation for domestic and foreign uncertainties, including the expansion of loan loss reserves, and support the activation of self-debt restructuring for vulnerable borrowers with delinquency concerns.