Delinquency rate on bank loans up in July, FSS data says

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Published: 26 Sep. 2025, 09:49

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

The delinquency rate on banks' won-denominated loans came to 0.57 percent in July, up 0.05 percentage points 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 billion) in July, little changed from the previous month.

The amount of write-offs of bad loans stood at 1.6 trillion won in the month, sharply down from 4.1 trillion won in June, the data showed.

The delinquency rate on corporate loans stood at 0.67 percent in July, up 0.07 percentage point from a month before.

The rate on household loans rose by 0.02 percentage point to 0.43 percent over the cited period, the FSS said.

Yonhap