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S. Korean banks' loan delinquency ratio rises in April

SEOUL
2024-06-14 09:29

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SEOUL, June 14 (Xinhua) -- South Korean banks' loan delinquency ratio rebounded in April due to more delinquent loan than bad loan settlement, financial watchdog data showed Friday.

Bank loan, overdue at least one month, came in at 0.48 percent of the total at the end of April, up 0.05 percentage points from a month earlier, according to the Financial Supervisory Service (FSS).

It turned around after going down 0.08 percentage points in the previous month.

New delinquent loan came to 2.6 trillion won (1.9 billion U.S. dollars) in the cited month, higher than the settlement of non-performing loans worth 1.5 trillion won (1.1 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 last year, 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 stood at 0.12 percent in April, up from 0.11 percent in the previous month.

The delinquency ratio for bank corporate loan advanced 0.06 percentage points from a month earlier to 0.54 percent at the end of April, while the ratio for household loan gained 0.03 percentage points to 0.40 percent.
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