Delinquency rate on bank loans rises in July

The delinquency rate on loans extended by local banks rose from a month earlier in July, data showed Friday.The delinquency rate on banks' won-denominated loans came to 0.47 percent as of end-July, up 0.05 percentage point from a month earlier, according to the data from the Financial Supervisory Service.The on-month increase was attributed to a rise in newly delinquent loans, which amounted to 2.7 trillion won (US$2.03 billion), up 400 billion won from a month earlier, while the amount of resolved loans fell sharply to 1.5 trillion won from 4.4 trillion won in June.The delinquency rate on household loans reached 0.38 percent at end-July, up 0.02 percentage point from a month earlier, while the rate on corporate loans gained 0.07 percentage point to 0.53 percent over the cited period.The report comes amid growing concerns over household debts, which jumped to a 37-month high of 9.3 trillion won in August, following a 5.5 trillion-won increase in July, the financial regulator said earlier.Source: Y onhap News Agency