The Financial Supervisory Service said on the 21st that as of the end of June, the won-denominated loan arrears rate at domestic banks (based on principal and interest in arrears for one month or more) was 0.56%, down 0.11 percentage points (p) from the end of the previous month (0.67%). Compared with the same period last year (0.52%), it was up 0.04 percentage points.
New arrears in June totaled 2.6 trillion won, down 700 billion won from the previous month (3.3 trillion won). In contrast, the amount of resolved delinquent loans was 5.3 trillion won, up 3.8 trillion won from the previous month (1.5 trillion won). The new arrears rate fell from the previous month. The new arrears rate in June was 0.10%, down 0.03 percentage points from the previous month (0.13%). It was also 0.01 percentage points lower than the same period last year (0.11%).
The arrears rate for household loans (such as unsecured loans) excluding mortgage loan was 0.77%, down 0.13 percentage points from the previous month (0.90%). It was also 0.01 percentage points lower than the same period last year (0.78%).
The Financial Supervisory Service (FSS) said it is closely monitoring the soundness of the banking sector and will guide banks to strengthen soundness management by expanding preemptive loss-absorbing capacity and conducting bulk sales of nonperforming loans.