Banks' loan delinquency rate edges up in August

SEOUL, Oct. 9 (Yonhap) -- The delinquency rate for South Korean banks' won-denominated loans edged up in August due to a slight rise in the number of firms that failed to repay their debts, government data showed Tuesday.

The rate for bank loans more than 30 days overdue stood at 0.61 percent at the end of August, up 0.05 percentage point from a month earlier, according to the data from the Financial Supervisory Service (FSS).

Compared with a year ago, the rate was up 0.11 percentage point, the FSS said.

The delinquency rate for loans extended to firms rose 0.06 percentage point on-month to 0.87 percent in August.

The delinquency rate for loans to households gained 0.02 percentage point on-month to 0.29 percent at the end of August, 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.

kdh@yna.co.kr
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