Delinquency ratio on bank loans rises for second month in a row

Finance

Published: 16 Jul. 2024, 19:04

Delinquency ratio on bank loans rises for second month in a row

Automated teller machines situated at downtown Seoul. [YONHAP]

The delinquency ratio on loans extended by banks in Korea rose for a second consecutive month in May, data showed Tuesday.

The delinquency ratio on banks' won-denominated loans stood at 0.51 percent at end-May, up 0.03 percentage point from a month earlier, according to the data from the Financial Supervisory Service.

The rise follows a 0.05 percentage-point on-month increase in April. The May reading marks a 0.15 percentage-point rise from a year earlier.

The amount of newly overdue loans came to 2.7 trillion won ($1.95 billion) in May, up 100 billion won from a month earlier, while the amount of resolved loans gained 500 billion won to 2 trillion won over the cited period.

The delinquency ratio for corporate loans had come to 0.58 percent as of end-May, up 0.04 percentage point from a month earlier. The ratio for household loans came to 0.42 percent, up 0.02 percentage point from April.

Yonhap