Domestic Banks' Non-Performing Loans Reach 18.9 Trillion Won, Highest in 8 years... Corporate Loans Exceed 1 Trillion Won
6 Articles
6 Articles
As of the end of June this year, the volume of non-performing loans (NPLs) at domestic banks reached 18.9 trillion won, marking the highest level in eight years. This was largely due to a 1.2 trillion won increase in new NPLs from small and medium-sized enterprises (SMEs) compared to the previous quarter. According to the ‘Status of Non-performing Loans at Domestic Banks as of the End of June 2026’ released by the Financial Supervisory Service o…
Non-performing loans at domestic banks reached 18.9 trillion won at the end of June, marking an eight-year high. Corporate loans accounted for over 80% of the total bad debt, with the volume of new bad debt outpacing resolution. Consequently, banks' loan loss reserve ratio fell to 142.9%, weakening their capacity to cope with potential losses. Financial authorities are encouraging proactive management to address the growing bad debt in vulnerabl…
(Seoul = Yonhap News) Reporter Kang Ryu-na = The non-performing loan ratio of domestic banks rose in late June of this year due to the increase in non-performing corporate loans.
Bank Non-Performing Loans Hit 8-Year High
Banks' non-performing loans near 19 Trillion Won as of June this year, highest in eight years. (Photo courtesy of Shutterstock) Loans that banks have lent to companies and households and have become difficult to recover have approached 19 trillion won (about $13.86 billion). This is the largest amount in 8 years since 2018. Banks wrote off over 6 trillion won in non-performing loans from their books in the second quarter of this year alone, bu…
Domestic Banks' Non-Performing Loans Reach 19 Trillion Won in Q2… Corporate Sector Shows 'Red Light'
As of the second quarter of this year, the volume of non-performing loans (NPLs) in the domestic banking sector is approaching 19 trillion won. While financial authorities assessed the situation as favorable compared to the long-term average, they plan to strengthen preemptive soundness management in preparation for domestic and international economic uncertainties. According to the "Status of Non-performing Loans of Domestic Banks as of the En…
[Digital Daily Reporter Kim Nam-gyu] Non-performing loans (NPLs) at domestic banks have neared 19 trillion won. Newly generated NPLs in the second quarter of this year alone amounted to 7.2 trillion won. In particular, as defaults in corporate loans increased rapidly, the soundness indicators of the banking sector also deteriorated. According to the ‘Status of Non-performing Loans at Domestic Banks as of the End of June 2026 (Provisional)’ rele…
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