The expected credit risk index among banks stood at 20 for the October-December quarter, up 10 points from the previous quarter, according to the Bank of Korea (BOK).
The index among households advanced from 6 in the third quarter to 18 in the fourth quarter, but the figure among small companies declined from 24 to 21. The reading among big corporations rose from zero to 3.
The credit risk was forecast to rise sharply among households in the fourth quarter after the BOK's policy rate hike by 25 basis points to 0.75 percent in late August.
The BOK was widely expected to raise the benchmark interest rate further later this year.
The lending attitude index among banks rose from minus 15 in the third quarter to minus 12 in the fourth quarter, but it stayed below zero, indicating that banks would tighten loan standard in the fourth quarter.
The index for mortgage loan and credit loan to households came in at minus 15 and minus 32 respectively for the fourth quarter.
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