Delinquency rate on bank loans snaps 3-month rise in June

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Published: 29 Aug. 2025, 09:05 Updated: 29 Aug. 2025, 14:44

This file photo taken on May 21, shows an advert for home-backed loans at a bank in central Seoul. [YONHAP]

The delinquency rate on loans extended by local banks fell in June due mainly to a rise in write-offs of soured loans, data showed Friday.

The delinquency rate on banks' won-denominated loans came to 0.52 percent in June, down 0.12 percentage point from the previous month, according to preliminary data from the Financial Supervisory Service (FSS).

The amount of newly delinquent loans came to 2.8 trillion won ($2.02 billion) in the month, down from 3.5 trillion won in May.

The amount of write-offs of bad loans stood at 5.7 trillion won in June, up 4 trillion won from the previous month, the data showed.

The delinquency rate on corporate loans stood at 0.6 percent in June, down 0.17 percentage points from a month before.

The rate on household loans also fell by 0.06 percentage point to 0.41 percent over the cited period, the FSS said.

Yonhap