Default rate on bank loans increases slightly in July

SEOUL, Sept. 22 (Yonhap) — The delinquency rate on loans from banks in South Korea rose slightly in July from the previous month, but still remained at a record high due to State support against the virus-hit small traders, the financial watchdog said on Thursday.

The delinquency rate on banks’ won-denominated loans stood at 0.22% at the end of July, down from an all-time low of 0.20% recorded a month earlier, according to preliminary data from the Financial Monitoring Service (FSS). ).

Compared to the previous year, the July figure was down 0.05 percentage points.

The ratio reflected loans past due for a month or more in payment of principal and interest.

The delinquency rate on household loans rose 0.01 percentage point month on month to stand at 0.19% at the end of July, and the figure for business loans stood at 0.24% up 0.02 percentage points from the previous month, the data showed.

The delinquency rate has remained low recently as the government has put in place various financial measures to help small businesses alleviate their suffering caused by the pandemic, such as extending loan maturities and suspending service payments. debt.

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