The Financial Supervisory Service said on the 22nd that, as of the end of May, the delinquency rate on won-denominated loans at domestic banks (one month or more past-due principal and interest) was 0.67%, up 0.06 percentage points (p) from the end of the previous month (0.61%). It also rose 0.03 percentage points from the same period a year earlier (0.64%).
New arrears in May totaled 3.3 trillion won, up 400 billion won from the previous month (2.9 trillion won). In contrast, the amount of resolved delinquent claims was 1.5 trillion won, down 100 billion won from the previous month (1.6 trillion won). The new arrears rate also rose. The new arrears rate in May was 0.13%, up 0.01 percentage points from the previous month (0.12%). However, it was 0.01 percentage points lower than the same period a year earlier (0.14%).
The arrears rate for household loans (such as unsecured loans) excluding mortgage loan was 0.90%, up 0.07 percentage points from the previous month (0.83%). However, it was 0.04 percentage points lower than the same period a year earlier (0.94%).
The Financial Supervisory Service (FSS) said it plans to guide the banking sector to bolster loss-absorbing capacity and strengthen soundness management through active write-offs and sales of nonperforming loans and sufficient capital and loan-loss provision accumulation.