Seoul: The delinquency rate on loans extended by local banks increased in July due mainly to a fall in write-offs of soured loans, data showed Friday. The delinquency rate on banks’ won-denominated loans reached 0.57 percent in July, marking an increase of 0.05 percentage point from the previous month, according to preliminary data from the Financial Supervisory Service (FSS).

According to Yonhap News Agency, the amount of newly delinquent loans totaled 2.8 trillion won (US$2 billion) in July, maintaining a similar level to the previous month. However, the amount of write-offs of bad loans was recorded at 1.6 trillion won for the month, significantly down from 4.1 trillion won in June.

The data further revealed that the delinquency rate on corporate loans stood at 0.67 percent in July, reflecting an increase of 0.07 percentage point from the previous month. Meanwhile, the rate on household loans experienced a rise of 0.02 percentage point, reaching 0.43 percent over the same period, as reported by the FSS.