The delinquency rate on won-denominated loans at Korean banks rose to 0.63 percent in July, according to preliminary Financial Supervisory Service data. That was up 0.07 percentage point from June's 0.56 percent and 0.06 point higher than a year earlier.
The increase reflected more newly overdue loans alongside a smaller volume of bad-debt cleanup after the end of the quarter. Large-company delinquency showed a particularly sharp monthly increase, adding to concern about overall credit quality.