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Bank Loan Delinquency Hits 10-Year High in August

Korea's bank loan delinquency ratio rose for the second consecutive month in August, reaching 0.69 percent—the highest level in about 10 years, Yonhap reports. The Korea Times also notes the ratio on banks' won-denominated loans stood at 0.69 percent as of end-August, up from the previous month. The increase comes as the Bank of Korea held its base rate steady at 3.0 percent on Oct. 22, after consecutive hikes in July and August, with Governor Shin Hyun-soo signaling the central bank will maintain tight monetary policy. The won strengthened to 1,324.2 per dollar following the rate hold.

  1. Delinquency ratio on bank loans up for 2nd month in August Korea Times · 2026-10-22
  2. Delinquency ratio on bank loans up for 2nd month in Aug. Yonhap · 2026-10-22
  3. Bank of Korea Freezes Base Rate at 3.0% Business Korea · 2026-10-22
  4. BOK keeps rate steady at 3%, but further hikes remain on table Korea Times · 2026-10-22
  5. BOK’s Shin: Central Bank to Maintain Tight Monetary Policy KBS World · 2026-10-22
  6. Korean won strengthens against US dollar after BOK holds key rate Korea Times · 2026-10-22

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