South Korean bank loan delinquency rises for second month in August
The delinquency ratio on South Korean bank loans increased in August, marking a second consecutive monthly rise.
Data from the Financial Supervisory Service show that the share of overdue won-denominated loans grew to 0.69 percent at the end of August, up 0.06 percentage points from July. New overdue loans totalled about 3 trillion won, slightly lower than the previous month, while write-offs rose to 1.5 trillion won. Corporate loan delinquency reached 0.86 percent and household loan delinquency climbed to 0.45 percent.
Why it matters
Rising loan delinquencies signal growing credit stress in South Korea's banking sector.
In this story
delinquency ratiobank loanswon-denominated loanscorporate loanshousehold loanswrite-offsoverdue loansSouth Korea
