The South Korea Financial Supervisory Service published March 2026 data showing the delinquency rate on domestic banks’ won-denominated loans at 0.56% at end-March. That was down 0.06 percentage points from 0.62% a month earlier, but up 0.03 percentage points from 0.53% a year earlier. The monthly improvement reflected a KRW3.0 trillion increase in resolved loans and a KRW0.3 trillion decline in newly delinquent loans. Business loan delinquency fell to 0.68% from 0.76%, mainly because small and medium-sized enterprise loan delinquency declined to 0.81% from 0.92%. Within that, SME corporation loans fell to 0.88% and individual business loans to 0.71%. By contrast, the delinquency rate on loans to large companies rose to 0.22% from 0.19%. Household loan delinquency also improved, falling to 0.40% from 0.45%, with mortgage loans at 0.29% and unsecured loans at 0.76%. The Financial Supervisory Service noted that domestic banks tend to reduce delinquency rates toward quarter-end through closer management of delinquent loans.
South Korea Financial Supervisory Service2026-05-26
South Korea Financial Supervisory Service reports domestic banks’ won-denominated loan delinquency rate fell to 0.56% in March 2026
The South Korea Financial Supervisory Service reported that the delinquency rate on domestic banks’ won-denominated loans fell to 0.56% at end-March 2026 from 0.62% a month earlier, but remained above 0.53% a year earlier. The improvement reflected higher resolved loans and fewer new delinquencies, with notable declines in small and medium-sized enterprise and household loan delinquency, while large corporate loan delinquency rose. The authority said domestic banks typically reduce delinquency rates toward quarter-end through closer management of delinquent loans.