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Delinquency rate on bank loans down in March

Published: 21 May. 2025, 09:07 Updated: 21 May. 2025, 14:51

This photo, taken Oct. 3, 2021, shows signs about a bank's loan programs that were put up on the exterior of a lender in Seoul. Korea's financial regulator is reviewing further tightening rules on household loans in a bid to curb the fast growth of household debt. [YONHAP]

The delinquency rate on loans extended by local banks fell from a month earlier in March due mainly to an increase in the write-offs of soured loans, data showed Wednesday.

The delinquency rate on banks' won-denominated loans came to 0.53 percent in March, down 0.05 percentage point from the previous month, according to preliminary data from the Financial Supervisory Service (FSS).

The amount of newly delinquent loans came to 3 trillion won ($2.16 billion) in the month, up from the 2.9 trillion won in February.

The amount of write-offs of bad loans also rose by 2.3 trillion won to 4.1 trillion won over the cited period, the data showed.

The delinquency rate on corporate loans stood at 0.62 percent in March, down 0.06 percentage point from a month before.

The rate on household loans fell by 0.02 percentage point to 0.41 percent over the cited period, the FSS said.

Yonhap