Delinquency rate on bank loans up for 3rd month in May

The delinquency rate on loans extended by local banks rose for the third consecutive month in May due mainly to a rise in newly soured loans, data showed Friday.

The delinquency rate on banks' won-denominated loans came to 0.64 percent in May, up 0.07 percentage point from the previous month, according to preliminary data from the Financial Supervisory Service.

The amount of newly delinquent loans came to 3.5 trillion won ($2.56 billion) in the month, up from 2.9 trillion won in April.

The amount of write-offs of bad loans stood at 1.7 trillion won in May, little changed from the previous month, the data showed.

The delinquency rate on corporate loans stood at 0.77 percent in May, up 0.09 percentage point from a month before.

The rate on household loans also rose by 0.04 percentage point to 0.47 percent over the cited period, the FSS said.

Yonhap