South Korea's Bank Loan Delinquency Rate Hits 0.67% in May, Highest in 9.7 Years

According to data released by South Korea's Financial Supervisory Service (FSC) on July 22, domestic banks' Korean won loan delinquency rate reached 0.67% at the end of May 2026, up 0.06 percentage points from April. This marks the highest level since October 2016. The delinquency rate has been on an upward trend since December 2025, interrupted temporarily in March.

By sector, corporate loan delinquency rose to 0.84% in May from 0.74% in April, while household loan delinquency increased to 0.45% from 0.42%. Newly delinquent loans totaled 3.3 trillion Korean won in May, up 0.4 trillion won from April.