Korea Business News Agency - NSP NEWS AGENCY.

(=NSP NEWS) = According to the ‘First Half of 2023 Financial Stability Report’ released by the Bank of Korea on the 21st, in the case of household loans handled during 2013-2019, loans by borrowers in their 30s or younger accounted for 29.6% of the total, but in the case of household loans handled during 2020-2021, which experienced Corona 19, the proportion significantly increased to 38.3%.

The Bank of Korea said, “As the borrowers’ income base is somewhat weaker than other age groups, it is necessary to keep in mind the possibility that the delinquency rate of household loans handled after 2020, centering on household loans under the age of 30, will rise higher than expected for a while.”

In particular, when the Corona 19 policy support ends, the loan delinquency rate that has endured so far is expected to increase for some time.

The Bank of Korea said, “In common, the delinquency rate of household loans handled between 2013 and 2019 showed a tendency to gradually decline after peaking at the 1.0-1.5% level after rising steeply for 6 to 8 quarters immediately after handling.” “However, in the case of household loans handled after 2020, thanks to low interest rates and support for COVID-19-related policies, the upward trend in the delinquency rate has slowed considerably compared to the past, and it seems that the level of the delinquency rate has not reached its peak yet.”

“In the case of loans handled after 2020, it seems inevitable that some of the delinquencies that have been deferred will increase due to rising loan interest rates and reduced policy support, which is expected to act as pressure to increase the delinquency rate on household loans for a while,” he said.

By Soon-ki Lee(s8789@nspna.com) and Soo-in Kang(sink606@nspna.com)

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