Seoul: Loans extended by insurance companies in South Korea fell in the fourth quarter of 2024 from a year earlier amid high interest rates and tightened lending rules, data showed Sunday.
According to Yonhap News Agency, insurers' outstanding loans reached 269.6 trillion won (US$183 billion) as of the end of December, marking a decline of 3.6 trillion won from a year earlier. However, this figure represents a gain of 2.7 trillion won from three months prior. The year-on-year decrease was mainly due to a reduction in loans extended to businesses.
Household lending saw a slight increase, standing at 135.7 trillion won as of the end of December, up 0.7 trillion won from a year earlier. In contrast, corporate lending experienced a significant drop, decreasing by 4.3 trillion won to 133.8 trillion won over the same period.
The loan delinquency rate, which indicates the proportion of loan principal or interest unpaid for at least a month, rose to 0.61 percent at the end of December, up from 0.42 percent a year earlier, as reported by the financial watchdog. Conversely, the rate of insurers' nonperforming loans improved, coming down to 0.64 percent from 0.74 percent a year earlier, the data showed.