Seoul: The delinquency ratio on loans extended by banks experienced an increase for the second month in a row in May, driven primarily by a rise in newly soured loans, as indicated by recent data.
According to Yonhap News Agency, the delinquency ratio on banks' won-denominated loans was recorded at 0.67 percent at the end of May, marking an increase of 0.06 percentage point from the previous month. The Financial Supervisory Service (FSS) provided the data, highlighting the trend.
Newly overdue loans amounted to 3.3 trillion won (approximately US$2.23 billion) in May, reflecting a rise of 400 billion won from the previous month. Conversely, the amount of write-offs for these loans decreased to 1.5 trillion won, a decline of 100 billion won during the same period, as per the FSS's report.
The delinquency ratio for corporate loans reached 0.84 percent by the end of May, an increase of 0.1 percentage point compared to the previous month. Meanwhile, the ratio for household loans rose by 0.03 percentage point to 0.45 percent over the same timeframe.