The South Korea Financial Supervisory Service published its end-December 2025 monitoring data on domestic banks’ loans classified as substandard or below (SBLs). The SBL ratio was unchanged from end-September at 0.57%, while the SBL balance increased to KRW 16.6 trillion and the ratio was 0.03 percentage points higher than a year earlier. Bad-debt provisions fell to KRW 26.7 trillion, bringing the non-performing loan coverage ratio down to 160.3%. Business-loan SBLs totaled KRW 13.2 trillion (SBL ratio 0.70%), with large-company SBL ratios rising to 0.49% from 0.41% over the quarter and SME ratios declining to 0.83% from 0.88%. Household-loan SBLs were KRW 3.1 trillion (0.31%), including mortgages at 0.21% and unsecured loans at 0.64%, while credit card receivables and loans stood at a 1.84% SBL ratio. In the fourth quarter of 2025, new SBL inflows were KRW 5.9 trillion versus KRW 5.7 trillion resolved, mainly via write-offs and loan sales (KRW 4.1 trillion).
South Korea Financial Supervisory Service 2026-03-25
South Korea Financial Supervisory Service publishes December 2025 data showing domestic banks’ substandard or below loan ratio steady at 0.57% and coverage ratio down to 160.3%
The South Korea Financial Supervisory Service reported that the substandard or below (SBL) loan ratio for domestic banks remained at 0.57% at the end of December 2025, with the SBL balance rising to KRW 16.6 trillion. Business-loan SBLs totaled KRW 13.2 trillion, with large-company SBL ratios increasing to 0.49% and SME ratios decreasing to 0.83%. Household-loan SBLs were KRW 3.1 trillion, with a 0.31% ratio, while new SBL inflows were KRW 5.9 trillion against KRW 5.7 trillion resolved.