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Banks' loan delinquency rate edges up in October

The delinquency rate for South Korean banks' won-denominated loans edged up in October due to a slight rise in the number of firms that failed to repay their debts, government data showed Tuesday.

The rate for bank loans more than 30 days overdue stood at 0.58 percent at the end of October, up 0.03 percentage point from a month earlier, according to the data from the Financial Supervisory Service.


Compared with a year ago, the rate was up 0.1 percentage point, the FSS said.

The delinquency rate for loans extended to firms fell 0.06 percentage point on-month to 0.85 percent in October.

The delinquency rate for loans to households also rose 0.01 percentage point on-month to 0.27 percent at the end of October, according to the data.

The FSS said it will keep close tabs on loan delinquency trends to prevent rising market interest rates from leading to more overdue loans. (Yonhap)