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Delinquency rate on bank loans up for 2nd month in August

Published: 24 Oct. 2025, 08:54 Updated: 24 Oct. 2025, 13:54

Pedestrians walk by a banner advertising home mortgage loan products at a bank in Seoul on Sept. 7. [YONHAP]

The delinquency rate on loans extended by local banks increased for the second consecutive month in August due mainly to a rise in newly soured loans, data showed Friday.

The delinquency rate on banks' won-denominated loans came to 0.61 percent in August, up 0.04 percentage point from the previous month, according to preliminary data from the Financial Supervisory Service (FSS).

The amount of newly delinquent loans came to 2.9 trillion won ($2.03 billion) in August, up 0.1 trillion won from the previous month.

The amount of write-offs of bad loans stood at 1.8 trillion won in the month, also up 0.2 trillion won over the cited period, the data showed.

The delinquency rate on corporate loans stood at 0.73 percent in August, up 0.06 percentage point from a month before.

The rate on household loans rose by 0.02 percentage point to 0.45 percent over the cited period, the FSS said.

Yonhap