Insurance firms' loans drop significantly on-year in Q3

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Insurance firms' loans drop significantly on-year in Q3

Published: 22 Nov. 2024, 10:39 Updated: 22 Nov. 2024, 15:13

The headquarters office of Financial Services Commission located inside the government complex in Jongno District, central Seoul. [NEWS1]

Loans extended by insurance companies in Korea decreased sharply in the third quarter of the year from a year earlier amid high interest rates and tightened lending rules, data showed Friday.

Insurers' outstanding loans had reached 266.9 trillion won (US$191.4 billion) as of end-September, down 6.4 trillion won from a year earlier, according to the data from the Financial Supervisory Service.

The reading also marks a 0.5 trillion-won drop from three months earlier.

The on-year decrease was attributed to a decline in loans extended both to businesses and households.

Household lending had stood at 134.4 trillion won as of end-September, down 0.3 trillion won from a year before, while corporate lending shrank by 6.1 trillion won to 132.4 trillion won over the cited period.

The loan delinquency rate, which measures the proportion of loan principal or interest unpaid for at least a month, stood at 0.62 percent at end-September, up from 0.54 percent a year earlier, according to the financial regulator.

The ratio of insurers' nonperforming loans came to 0.71 percent, down from 0.76 percent a year earlier.

Yonhap