The rebound in the delinquency rate came as banks usually dispose of larger amounts of bad debts at the end of each quarter to improve their quarterly balance sheets.
In April, local banks cleared bad debts worth 600 billion won ($536.7 million), down 1.1 trillion won from a month earlier, the FSS said.
Banks’ loan delinquency rate remains stable mainly because the government has encouraged local lenders to extend loan maturity or delay interest payments to help households and firms struggling to cope with the economic fallout of the pandemic.
The delinquency rate for corporate loans rose 0.03 percentage point on-month to 0.4 percent in April, and the corresponding figure for household loans gained 0.01 percentage point to 0.19 percent. (Yonhap)