The Financial Supervisory Service said on the 16th that as of the end of February this year, the won-denominated loan arrears rate (principal and interest overdue for one month or more) at domestic banks was 0.62%, up 0.06 percentage points from the end of the previous month (0.56%) and 0.04 percentage points from the same month a year earlier (0.58%).
New arrears in February totaled 3 trillion won, up 200 billion won from the previous month (2.8 trillion won). The amount of resolved delinquent loans was 1.3 trillion won, similar to the previous month. The new arrears rate in February was 0.12%, up 0.01 percentage points from the previous month (0.11%). The new arrears rate in February is the amount of new arrears in February divided by the outstanding loan balance at the end of the previous month.
The household loan arrears rate in February was 0.45%, up 0.03 percentage points from the end of the previous month (0.42%). The mortgage loan arrears rate rose 0.02 percentage points over the same period to 0.31%, and the household loan arrears rate excluding mortgages rose 0.06 percentage points to 0.9%.
The corporate loan arrears rate in February was 0.76%, up 0.09 percentage points from the end of the previous month (0.67%). Over the same period, the large-corporation loan arrears rate rose 0.06 percentage points to 0.19%, small and mid-sized corporate loans rose 0.1 percentage points to 0.92%, small corporate loans rose 0.13 percentage points to 1.02%, and individual business loan arrears rose 0.07 percentage points to 0.78%.
The Financial Supervisory Service (FSS) said, "Arrears rates are on an upward trend, centering on small corporations," and noted, "It is necessary to prepare for the possibility that the rise in arrears rates will continue due to internal and external risk factors."