Overdue loan payments reach W8.5tr

Overdue loan payments from local companies marked 8.5 trillion won ($7.6 billion) as of August, an increase of 13.1 percent compared to the previous month, according to Bank of Korea’s report submitted to the Democratic United Party’s Rep. Jeong Seong-ho on Thursday.

BOK analyzed firms’ overdue repayment at 10 local banks and four specialized lenders including Korea Development Bank.

The arrearage per month rose to 8-10 trillion won in 2009 right after the financial crisis, but fell to 5-7 trillion won in the first half of this year.

The figure, however, was 6.2 trillion won in June, 7.5 trillion won in July and recorded this year’s record-high 8.5 trillion won in August.

By Park Min-young  (claire@heraldcorp.com)