delinquency ratio-August
Delinquency ratio on bank loans up in August amid rising borrowing costs
SEOUL, Oct. 19 (Yonhap) -- The delinquency ratio on loans extended by banks in South Korea rose in August from a month earlier as borrowers are under growing pressure from fast-rising borrowing costs, data showed Wednesday.
The delinquency ratio on banks' won-denominated loans came to 0.24 percent as of end-August, up 0.02 percentage point from a month earlier, according to the preliminary data from the Financial Supervisory Service (FSS).
On a year-on-year basis, the figure was down 0.04 percentage point.
The ratio reflected loans overdue by one month or longer in principal and interest payment.
Financial burden on many indebted people mounted as the Bank of Korea (BOK) has pushed for sharp rate hikes to combat rising inflation. The BOK has hiked its benchmark interest rate by a combined 2.5 percentage point since August last year.
The delinquency ratio on household loans went up 0.02 percentage point on-month to stand at 0.21 percent as of end-August, and the figure for corporate loans rose to 0.27 percent from the previous month's 0.24 percent, according to the data.
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