The number of Korean delinquent bank loan borrowers rose almost 50 percent in the first half compared to two and a half years ago despite the regulator's efforts to curb household debt, data showed Monday.
The number of bank loan borrowers on default reached 252,049 as of the end of June, up 46.5 percent from the end of 2009, according to data compiled based on loan figures from six major local banks.
The term refers to borrowers who fail to repay bank loans for more than three months and whose records of creditworthiness are reported to a bank association.
The number of such delinquent borrowers has continued to grow by around 20,000 to 30,000 per year despite the government's efforts to stem growing household debt, the data showed.
According to separate data by the financial watchdog, the number of delinquent card loan borrowers over the past three years reached near 500,000 in 2011, accounting for about 1 percent of the total population.
South Korea is grappling with growing household debt as the private sector's high indebtedness is feared to crimp consumer spending, curbing the economic growth.
The economic slowdown is prompting more people to be delinquent on debt as their debt-serving capacity is worsening amid stagnant income growth.
As most card loan borrowers have low credit-worthiness, rises in the number of such borrowers and delinquency rates are feared to hurt the quality of household debt, market watchers say. (Yonhap)