Banks' loan delinquency rate falls to record low in June

The delinquency rate of South Korean banks' won-denominated loans fell to a record low in June as banks significantly resolved distressed loans, government data showed Wednesday.

The rate for bank loans more than 30 days overdue stood at 0.43 percent at the end of June, down 0.15 percentage point from a month earlier, according to the data by the Financial Supervisory Service.

Compared to a year ago, the rate was down 0.28 percentage point, it said.

The end-June reading was the lowest rate since 2007, when the regulator began compiling data on the delinquency rate.

"In June, newly delinquent loans decreased compared to the previous month and resolved loans of banks significantly expanded," the regulator said in a statement. "This contributed to the decline in the delinquency rate for June."

The delinquency rate of loans extended to large firms stood at 0.57 percent at the end of June, down 0.07 percentage point from a month earlier. That of loans to households fell 0.05 percentage point on month to 0.25 percent at the end of June, according to the data.  (Yonhap)