Korean banks’ bad loans hold steady in third quarter at 14.5 trillion won

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Korean banks’ bad loans hold steady in third quarter at 14.5 trillion won

Published: 29 Nov. 2024, 10:20

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

Korean banks' bad loan increases remained almost flat in the third quarter, data showed Friday.

Loans classified as substandard or below (SBL) held by local banks had come to 14.5 trillion won ($10.39 billion) as of end-September, up 0.1 trillion won from three months earlier, according to the data from the Financial Supervisory Service.

The figure has been on the rise since the fourth quarter of 2022 till the second quarter of the year.

The percentage of SBLs to the total outstanding loans came to 0.53 percent at the end of September, flat from three months earlier.

The ratio of business loans classified as SBLs had stood at 0.65 percent as of end-September, flat from three months earlier, while the ratio for household loans also remained unchanged over the same period at 0.27 percent, according to the financial regulator.

Yonhap