The Financial Supervisory Service said on the 28th that as of the end of September, the won-denominated loan arrears rate at domestic banks was 0.51%, down 0.1 percentage point (P) from the end of the previous month. New arrears generated in September totaled 2.5 trillion won, down 400 billion won from the previous month. The amount of delinquent claims resolved in September also reached 4.8 trillion won, up 3 trillion won from the previous month, pushing the arrears rate lower.
As of the end of September, the arrears rate on corporations loans (0.61%) fell 0.12 percentage point from the end of the previous month, and the arrears rate on household loans (0.39%) fell 0.06 percentage point. The arrears rate on large corporations loans was 0.12%, and on small and midsize corporations loans was 0.75%, down 0.03 percentage point and 0.14 percentage point, respectively, from the end of the previous month.
The Financial Supervisory Service (FSS) said it would guide banks to maintain sufficient loss-absorbing capacity in preparation for an expansion of arrears and bad debt due to the economic slowdown and domestic and external uncertainty.