South Korea’s Financial Supervisory Service reported that domestic banks’ delinquency rate on loans denominated in won reached 0.69% at the end of August 2026, up 0.06 percentage points from July and 0.08 percentage points from a year earlier. The measure covers principal or interest payments overdue for at least one month. This was the second consecutive monthly increase following June’s 0.56%, although rates typically rise during a quarter and fall toward its end as banks manage delinquent loans. Newly delinquent loan volumes declined by KRW 0.2 trillion from July, while resolved loan volumes increased by KRW 0.1 trillion. Business loan delinquency rose to 0.86% from 0.78% in July. The rate for small and medium-sized enterprises increased by 0.09 percentage points to 1.00%, compared with 0.39% for large companies. Within the smaller business segment, delinquency reached 1.10% for corporations and 0.86% for individual businesses. Household loan delinquency increased to 0.45% from 0.42%, with mortgage delinquency rising to 0.31% and unsecured loan delinquency reaching 0.91%.
South Korea’s Financial Supervisory Service reports bank loan delinquency rate rises to 0.69% in August, with SME loans at 1.00%
South Korea’s Financial Supervisory Service reported that domestic banks’ won loan delinquency rate increased to 0.69% in August 2026 from 0.63% in July, marking a second consecutive monthly rise. Business loan delinquency reached 0.86%, including 1.00% for small and medium-sized enterprises, while household loan delinquency rose to 0.45%. Rates typically increase during a quarter before declining toward its end as banks manage delinquent loans.