Seoul: The delinquency rate on loans extended by local banks increased in April compared to the previous month, primarily due to a reduction in the write-offs of non-performing loans, recent data revealed.
According to Yonhap News Agency, preliminary data from the Financial Supervisory Service (FSS) indicated that the delinquency rate on banks' won-denominated loans reached 0.57 percent in April, marking a 0.04 percentage point rise from March. The volume of newly delinquent loans amounted to 2.9 trillion won (approximately US$2.14 billion) during the month, a slight decrease from 3 trillion won recorded in March.
The data further revealed that the amount of write-offs of bad loans was 1.7 trillion won in April, a significant drop from the 4.1 trillion won in the preceding month. The delinquency rate on corporate loans increased to 0.68 percent in April, rising by 0.06 percentage points from March.
Additionally, the rate on household loans experienced a marginal increase of 0.02 percentage points, reaching 0.43 percent during the same period, as stated by the FSS.