The South Korea Financial Supervisory Service published new data showing that the delinquency rate on domestic banks’ won-denominated loans was 0.52% at end-June 2025, down 0.12 percentage points from a month earlier but up 0.10 percentage points from a year earlier. The measure is defined as the share of loans with principal or interest payments overdue by at least one month. Month on month, newly delinquent loans decreased by KRW 0.7 trillion, while resolved loans increased by KRW 4.0 trillion. By segment, delinquency rates fell for business loans overall (to 0.60%), loans to large companies (to 0.14%), loans to small and medium-sized enterprises (to 0.74%), and household loans (to 0.41%), with mortgage loans at 0.30% and unsecured loans at 0.78%; the June 2025 figures are preliminary and subject to change.
South Korea Financial Supervisory Service 2025-08-29
South Korea Financial Supervisory Service reports domestic banks’ won loan delinquency rate fell to 0.52% in June 2025
The South Korea Financial Supervisory Service reported a 0.52% delinquency rate on domestic banks’ won-denominated loans as of June 2025, down from the previous month but up from the prior year. Newly delinquent loans fell by KRW 0.7 trillion, while resolved loans rose by KRW 4.0 trillion. Delinquency rates declined across business loans, including those to large companies, SMEs, and households, with mortgage loans at 0.30% and unsecured loans at 0.78%.