As of May, the domestic banks' won loan arrears rate (arrears of principal and interest that are more than 1 month overdue) was 0.64%, up 0.13 percentage points from the same period last year (0.51%). The arrears rate has shown an upward trend, with rates at 0.51% in May last year, 0.53% in August of the same year, 0.52% in November, and 0.58% in February.
According to the financial authorities on the 24th, the newly incurred arrears amount in May was 3.5 trillion won, an increase of 600 billion won from the previous month (2.9 trillion won). The scale of arrears debt resolution has remained at 1.7 trillion won during the same period.
The newly incurred arrears rate in May stood at 0.14%, up 0.02 percentage points from the previous month (0.12%). The newly incurred arrears rate is calculated by dividing the newly incurred arrears amount in the current month by the previous month's loan balance. The rate has maintained a level of 0.12–0.13% from May of last year to April of this year.
As of May, the household loan arrears rate was 0.47%, up 0.04 percentage points from the previous month (0.43%). Compared to the same month last year (0.42%), it represents an increase of 0.05 percentage points. Among these, the mortgage loan arrears rate in May was 0.32%, up 0.08 percentage points from the previous month (0.86%). During the same period, the arrears rate for household loans excluding mortgage loans rose from 0.86% to 0.94%.
As of May, the corporate loan arrears rate was 0.77%, a rise of 0.09 percentage points compared to the previous month (0.68%). During the same period, the arrears rate for large corporations increased by 0.02 percentage points to 0.15%, small and medium enterprises' arrears rate rose by 0.12 percentage points to 0.95%, the arrears rate for small corporations increased by 0.14 percentage points to 1.03%, and the arrears rate for individual business loans rose by 0.08 percentage points to 0.82%.
The Financial Supervisory Service noted, "The increase in newly incurred arrears led to a rise in the arrears rate in May, which expanded compared to the previous month and the same month last year, indicating a continued upward trend in the domestic banks' arrears rate. We plan to strengthen monitoring primarily in vulnerable sectors and encourage proactive debt adjustments in anticipation of potential expansion of arrears and insolvency."