The South Korea Financial Supervisory Service reported that the delinquency rate on domestic banks’ won-denominated loans rose to 0.63% at the end of July 2026, up 0.07 percentage points from June and 0.06 percentage points from a year earlier. Newly delinquent loans increased by KRW 0.6 trillion from the previous month, while resolved delinquent loans declined by KRW 3.9 trillion. The rate covers loans with principal or interest payments overdue for at least one month. Business loan delinquencies rose to 0.78% from 0.68%, including increases to 0.36% for large companies and 0.91% for small and medium-sized enterprises. The household loan rate edged up to 0.42% from 0.40%, as mortgage delinquencies reached 0.29% and unsecured loan delinquencies climbed to 0.84%. The Financial Supervisory Service noted that delinquency rates tend to rise during a quarter before declining toward quarter-end as banks intensify management of overdue loans.
2026-09-22South Korea Financial Supervisory Service
South Korea Financial Supervisory Service reports domestic bank won loan delinquency rate rose to 0.63% in July
The South Korea Financial Supervisory Service reported that domestic banks’ won-denominated loan delinquency rate rose to 0.63% in July 2026, from 0.56% in June. Business loan delinquencies increased to 0.78%, while the household loan rate edged up to 0.42%.