The South Korea Financial Supervisory Service published data showing that the delinquency rate on domestic banks’ won-denominated loans, defined as loans with principal or interest overdue by at least one month, rose to 0.56% as of end-January 2026. This was up 0.06 percentage points from 0.50% a month earlier and up 0.03 percentage points from 0.53% a year earlier. The increase reflected a KRW 0.4 trillion month-on-month rise in newly delinquent loans alongside a KRW 3.8 trillion decline in resolved loans. By segment, the delinquency rate on loans to large companies edged up to 0.13% (from 0.12% in December 2025), while SMEs increased to 0.82% (up 0.10 percentage points); household loans rose to 0.42% (up 0.04 percentage points), with mortgage loans at 0.29% and unsecured loans at 0.84%.
South Korea Financial Supervisory Service 2026-03-20
South Korea Financial Supervisory Service reports January 2026 bank won loan delinquency rate rising to 0.56%
The South Korea Financial Supervisory Service reported an increase in the delinquency rate on domestic banks’ won-denominated loans to 0.56% as of January 2026, up from 0.50% in December 2025. The rise was driven by a KRW 0.4 trillion increase in newly delinquent loans and a KRW 3.8 trillion decrease in resolved loans. Delinquency rates rose across segments, with large companies at 0.13%, SMEs at 0.82%, and household loans at 0.42%.