Seoul: The delinquency rate on loans extended by local banks increased for the third consecutive month in May, primarily due to a rise in newly soured loans, data showed Friday. The delinquency rate on banks' won-denominated loans reached 0.64 percent in May, marking a 0.07 percentage point increase from the previous month.
According to Yonhap News Agency, the amount of newly delinquent loans amounted to 3.5 trillion won (US$2.56 billion) in May, an increase from 2.9 trillion won in April. Meanwhile, the amount of write-offs of bad loans remained largely unchanged at 1.7 trillion won in May.
The delinquency rate on corporate loans was recorded at 0.77 percent in May, reflecting a 0.09 percentage point rise from the previous month. The rate on household loans also experienced an increase, rising by 0.04 percentage point to 0.47 percent over the same period, as reported by the Financial Supervisory Service (FSS).