Some conglomerates’ financial woes and households’ growing difficulties in repaying debts are increasing local banks’ bad debt.
The total sum of nonperforming loans from the country’s six largest banks has been snowballing, reaching 13.1 trillion won ($12 billion) as of the end of March, up 12.9 percent since December’s 11.6 trillion won. A nonperforming loan is one that appears unlikely or impossible to be repaid.
The six banks ― Shinhan Bank, Hana Bank, Korea Exchange Bank, KB Kookmin Bank, Woori Bank and the Industrial Bank of Korea ― account for about 80 percent of the nation’s bank loan funding, both for enterprises and households. Woori Bank holds the largest sum in nonperforming loans.
A bank official said the global economic slowdown had a negative influence on the financial credit of large firms, one of which is STX Group.
By Chung Joo-won (email@example.com