April 26, 2024
Economy
Loan delinquency of conglomerates drops in Nov.
[THE INVESTOR] The delinquency rate of domestic banks’ won-denominated loans extended to large firms dropped below 2 percent in November, according to data on Jan. 2.
This drop is the first in six months, and is partly a result of a court decision to resuscitate one of the nation’s major shipbuilders.
The decrease came as a local court approved a rehabilitation plan by STX Offshore & Shipbuilding, once the nation’s No. 4 shipyard. STX was put under court receivership last year, succumbing to a drawn-out slump in the shipbuilding industry.
The delinquency rate surged to 2.17 percent in June last year shortly after STX was placed under court protection and stayed in the 2-percent range till October. With the court's decision on Nov. 11 to revive the firm, some loans were redeemed, helping lower the rate.
“(We) will continue to monitor risk factors including the up and down of won-denominated loans by domestic banks and the possibility of vulnerable industries going insolvent,” the FSS said.
According to the Financial Supervisory Service, the delinquency rate of loans to large companies stood at 1.58 percent, down 0.99 percentage point from October.
Meanwhile, the delinquency rate of loans to small and medium-sized firms rose 0.02 percentage point to 0.85 percent on-month in November, and for household loans, the rate reached 0.30 percent, down 0.01 percentage point from a month ago and down 0.12 percentage point from a year ago.
(theinvestor@heraldcorp.com)
This drop is the first in six months, and is partly a result of a court decision to resuscitate one of the nation’s major shipbuilders.
The decrease came as a local court approved a rehabilitation plan by STX Offshore & Shipbuilding, once the nation’s No. 4 shipyard. STX was put under court receivership last year, succumbing to a drawn-out slump in the shipbuilding industry.
The delinquency rate surged to 2.17 percent in June last year shortly after STX was placed under court protection and stayed in the 2-percent range till October. With the court's decision on Nov. 11 to revive the firm, some loans were redeemed, helping lower the rate.
“(We) will continue to monitor risk factors including the up and down of won-denominated loans by domestic banks and the possibility of vulnerable industries going insolvent,” the FSS said.
According to the Financial Supervisory Service, the delinquency rate of loans to large companies stood at 1.58 percent, down 0.99 percentage point from October.
Meanwhile, the delinquency rate of loans to small and medium-sized firms rose 0.02 percentage point to 0.85 percent on-month in November, and for household loans, the rate reached 0.30 percent, down 0.01 percentage point from a month ago and down 0.12 percentage point from a year ago.
(theinvestor@heraldcorp.com)
