Non-performing loans at South Korea’s five major banks reached 7.6133 trillion won at the end of September, up about 1.3 trillion won from a year earlier and the highest level since March 2018. The increase was concentrated in corporate lending: the average non-performing loan ratio for large companies rose 0.08 percentage points and for small and medium-sized companies 0.04 points, while the household ratio rose 0.03 points to 0.22%.
Banks classify loans overdue for at least three months as non-performing, and the figures point to growing repayment strain amid weak domestic demand and high interest rates, although the evidence does not quantify future losses.