August Sees Slight Increase in South Korean Banks’ Loan Delinquency Ratio

SEOUL, - Preliminary data released on Wednesday indicates a marginal increase in the delinquency ratio on loans distributed by banks in South Korea for the month of August.

According to a news release by Yonhap News Agency, the delinquency ratio on won-denominated loans stood at 0.43 percent as of the end of August, a 0.04 percentage-point hike from the previous month. This marks a 0.19 percentage-point surge compared with the same period last year.

The value of newly overdue loans in August amounted to 2.2 trillion won (US$1.63 billion), an increase from 2 trillion won in July. Concurrently, the value of resolved loans rose to 1.4 trillion won from 1.1 trillion won over the cited period.

The FSS pointed out that although the delinquency ratio remains relatively stable at present, there is a need for preparedness for potential future increases due to high interest rates and ongoing economic uncertainties.

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