The South Korea Financial Supervisory Service reported that domestic banks’ won-denominated loan delinquency rate fell 0.11 percentage points from May to 0.56% at the end of June 2026, but remained 0.04 percentage points above its level a year earlier. The measure covers loans with principal or interest payments overdue by at least one month. Newly delinquent loans decreased by KRW 0.7 trillion from May, while resolved delinquent loans increased by KRW 3.8 trillion. The business loan delinquency rate declined to 0.68% from 0.84%, including decreases to 0.22% for large companies and 0.82% for small and medium-sized enterprises. The household loan rate fell to 0.40% from 0.45%, with mortgage and unsecured loan rates declining to 0.28% and 0.77%, respectively. The overall monthly decrease came at the end of a quarter, when banks typically intensify their management of delinquent loans.
2026-08-21South Korea Financial Supervisory Service
South Korea Financial Supervisory Service reports bank loan delinquency rate fell to 0.56% in June
The South Korea Financial Supervisory Service reported that domestic banks’ won-denominated loan delinquency rate fell to 0.56% at the end of June 2026 from 0.67% in May, although it was higher than a year earlier. Delinquency rates declined across business and household loans as newly delinquent lending decreased and resolved loans increased.