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Banks' loan delinquency rate edges down in March

The loan delinquency rate of South Korean banks edged down in March from a month earlier as they wrote off bad loans, government data showed Monday.

The delinquency rate for their won-denominated loans stood at 0.51 percent at the end of March, down 0.06 percentage point from a month earlier, according to the data by the Financial Supervisory Service.

(Yonhap)
(Yonhap)

Loans with both the principal and interest overdue by one month or more are considered delinquent.

The decline came as 1.2 trillion won ($1 billion) worth of loans turned sour in March, down 100 billion won from February, according to the data. It also showed that 2 trillion won worth of debt was written off.

The outstanding amount of delinquent loans reached 7.3 trillion won at end-March, down 800 billion won from the previous month.

The overall overdue rate for corporate loans shed 0.06 percentage point on-month to 0.67 percent at the end of March. The delinquency rate for household loans stood at 0.26 percent, down 0.03 percentage points from the previous month, the FSS said. (Yonhap)

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