The default rate is the ratio between banks’ outstanding loans and loans on which payments have delayed by more than a month.
According to the Financial Supervisory Service, large corporations default rate came to 2.59 percent at the end of August. The figure is the highest on record since related data started being compiled in 2008.
Large corporations’ default rate has been rising to new record highs since June, when the figure hit 2.17 percent. In comparison, large companies’ default rates have remained below 2 percent in previous years.
The FSS attributed the rise to STX Offshore and Shipbuilding and STX Heavy Industries going under court receivership in May and July, respectively. Their court receivership is estimated to have raised large corporations’ default rate by 1.4 percentage points.
By Choi He-suk (email@example.com)