Banks' loan delinquency rate inches down in September

The delinquency rate for South Korean banks' won-denominated loans edged down in September due to a slight decline in the number of firms that failed to repay their debts, government data showed Monday.

The rate for bank loans more than 30-days overdue stood at 0.44 percent at the end of September, down 0.06 percentage point from a month earlier, according to the data from the Financial Supervisory Service.

(Yonhap)

Compared with a year ago, the rate was also down 0.1 percentage point, it said.

The delinquency rate for loans extended to companies fell 0.08 percentage point on-month to 0.57 percent in September, with that for loans to households declining 0.03 percentage point on-month to 0.29 percent at the end of September, according to the data.

The FSS said it will keep close tabs on loan delinquency trends to prevent rising market interest rates from leading to more overdue loans. (Yonhap)