Banks' loan delinquency rate rises for 2nd month in May

The delinquency rate for South Korean banks' won-denominated loans rose for the second straight month in May due to an increase in overdue corporate and household loans, the financial watchdog said Wednesday.

The rate for bank loans more than 30 days overdue stood at 0.32 percent at the end of May, up from 0.3 percent the previous month, according to the Financial Supervisory Service (FSS).

Banks' loan delinquency rate hit a record low of 0.28 percent in March.

Compared with a year earlier, the rate was down 0.11 percentage point in May.

The delinquency rate for corporate loans rose 0.01 percentage point on-month to 0.41 percent in May, and the corresponding figure for household loans gained 0.01 percentage point to 0.2 percent.

For household lending, the delinquency rate for home-backed loans remained unchanged at 0.12 percent from a month earlier, and the rate for unsecured and other household loans rose 0.04 percentage point to 0.37 percent, the FSS said. (Yonhap)