Bad loans of Korean banks fell to 0.33% in March

The volume of resolved loans rose during the month.

The delinquency rate of domestic banks’ won-denominated loans– declined marginally by end March, thanks to more loans being resolved during the month, according to data from the Financial Supervisory Service of South Korea.

Bad loans were at 0.33% in March, 0.03 percentage point lower than in February. However, this is still 0.11 ppt higher than in March 2022.

In March, the volume of resolved loans expanded to KRW1.6t from a month ago, whilst that of newly delinquent loans fell to KRW0.2t. These contributed to the share of bad loans falling, the FSS said.