In February, the delinquency rate on loans from domestic banks rose to its highest level in 6 years and 3 months.
According to the Financial Supervisory Service on the 25th, as of the end of February, the delinquency rate on won loans from domestic banks (based on overdue principal and interest for more than 1 month) was 0.58%, an increase of 0.05 percentage points from the end of the previous month. This is the highest level since November 2018 (0.60%).
The FSS noted, "Despite a decrease in new arrears and an increase in the amount of resolved arrears, the delinquency rate rose again from the previous month." In February, the amount of new arrears was 2.9 trillion won, a decrease of 300 billion won from the previous month, while the amount of resolved overdue loans during the same period was 1.8 trillion won, an increase of 800 billion won.
By institutional sector, the delinquency rate on large corporate loans was 0.10%, an increase of 0.05 percentage points from the end of the previous month, while the delinquency rate on small and medium-sized enterprise loans was 0.84%, an increase of 0.07 percentage points compared to the same period. Among these, the delinquency rate for small corporate loans was 0.90%, and the delinquency rate for individual business loans was 0.76%, rising by 0.08 percentage points and 0.06 percentage points, respectively, from the previous month.
The delinquency rate on household loans was 0.43%, similar to the end of the previous month. The delinquency rate on mortgage loans was 0.29%, maintaining the level of the previous month, while the delinquency rate on household loans excluding mortgages (such as credit loans) rose by 0.05 percentage points to 0.89%.