Delinquency rate of South Korean banks at 0.47% in July

The volume of resolved loans was lower than in June.

The delinquency rate of South Korean banks’ won-denominated loans stood at 0.47% in end-July, rising by 0.05 percentage points (pp) from 0.42% in June.

The bad loan rate is also 0.08pp higher than the 0.39% in July 2023, according to data from the Financial Supervisory Service (FSS).

Delinquency rate on loans to large companies rose to 0.05%, from 0.04% a month earlier.

The rate for loans extended to SMEs climbed to 0.67%, from 0.58% previously.

For household loans, the delinquency rate is 0.38% for July versus 0.36% a month earlier.

The volume of resolved loans decreased by KRW2.9t compared to June.