Banks' bad-loan ratio up in Q2
SEOUL, Sept. 2 (Yonhap) -- South Korean banks' bad-loan ratio rose in the second...
South Korean banks bad-loan ratio increased in the second quarter of 2026, according to data released by the Financial Supervisory Service. The proportion of soured debts, classified as substandard or below (SBL), amounted to 18.9 trillion won (US$13.8 billion) by the end of June, a rise of 1.2 trillion won compared to the previous quarter.
This represented a 0.63 percent ratio of SBLs to the total outstanding loans, an increase of 0.03 percentage point from the first three months of the year. During the April-June period, banks wrote off 6.1 trillion won in bad loans, also up 1.7 trillion won from the preceding quarter. The ratio of business loans categorized as SBLs was 0.77 percent as of June, a 0.03 percentage point increase from the previous quarter.
The household loan ratio stood at 0.33 percent in June, also up 0.01 percentage point from three months earlier.
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