The ratio of bank loans, overdue at least a month, stood at 0.41 percent of the total as of the end of January, down 0.04 percentage points from a year earlier, according to the Financial Supervisory Service (FSS).
It was the lowest January reading since the FSS began to compile the data in 2007. From a month ago, the overdue loan ratio added 0.04 percentage points.
The delinquency ratio for bank loan to big corporations declined 0.34 percentage points from a year earlier to 0.38 percent as of the end of January, while the ratio for loan to small businesses 0.03 percentage points to 0.54 percent.
The bad debt ratio for loan to households inched up 0.01 percentage point to 0.29 percent in the cited period.
The low delinquency ratio came as the country's central bank cut its target rate to a record low of 1.25 percent in October last year.
Expectations ran high for the Bank of Korea (BOK) to slash its benchmark interest rate further in the near future to help bolster the lackluster economy, caused by the COVID-19 outbreak across the globe.
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