Bank loan, overdue at least one month, stood at 0.42 percent of the total at the end of June, down 0.09 percentage points from a month earlier, according to the Financial Supervisory Service (FSS).
The bad loan ratio turned downward after rising for the past two months as banks settled more bad loan ahead of the end of the second quarter.
New delinquent loan came to 2.3 trillion won (1.7 billion U.S. dollars) in the cited month, lower than the settlement of non-performing loans worth 4.4 trillion won (3.3 billion dollars).
The delinquency ratio has roughly been on the rise after hitting a bottom at 0.20 percent in June 2022 on the back of the higher policy rate.
The central bank had left its benchmark interest rate unchanged at 3.50 percent since January 2023, after hiking it by 3.0 percentage points for the past one and a half years.
Excluding the settled bad loan, the delinquency ratio for new bank loan came in at 0.10 percent in June, down 0.02 percentage points compared with the previous month.
The delinquency ratio for bank corporate loan declined 0.12 percentage points from a month earlier to 0.46 percent at the end of June, while the ratio for household loan dipped 0.06 percentage points to 0.36 percent.
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