Banks' bad loans fall 11.5% in Q2

Nonperforming loans at South Korean banks fell 11.5 percent in the second quarter from three months earlier due to a decline in overdue corporate loans, data showed Tuesday.

Nonperforming loans came to 12.2 trillion won ($10.5 billion) at the end of June, down 1.6 trillion won from the end of March, according to the data from the Financial Supervisory Service (FSS).

Overdue corporate loans reached 10.5 trillion won at the end of June, down 1.4 trillion won from a quarter earlier, the data showed.

Nonperforming loans by households fell by 100 billion won to 1.6 trillion won at the end of June.

The FSS said the ratio of bad loans to total lending came to 0.54 percent at the end of June, down 0.08 percentage point from a quarter earlier. (Yonhap)