Korean insurers' loan delinquency ratio down in September

The delinquency ratio of loans extended by Korean insurers inched down in September from a month earlier as the firms managed to write off bad debts, the financial regulator said Monday.

The average bad debt ratio of local life and non-life insurers came in at 0.81 percent, down from 0.85 percent the previous month, according to the Financial Supervisory Service (FSS).

Compared with a year earlier, the figure slipped 0.31 percentage point, the FSS said. The ratio is based on principal repayments that are at least one month overdue.

The corresponding ratio for household loans, which excludes credit borrowing, edged down 0.03 percentage point to 0.53 percent in September from a month earlier.

The ratio for home-backed loans, which have been part of a major drag on the overall economy as total household indebtedness reached a record high, stayed unchanged at 0.68 percent, the FSS said.

The delinquency ratio of corporate loans fell 0.06 percentage point to 1.40 percent over the cited period, with that incurred from property project financing declining 0.38 percentage point to 6.28 percent.

Meanwhile, the outstanding amount of insurer loans reached 108.5 trillion won as of end-September, up 0.14 percent from a month ago, the regulator added.

The FSS said there is a slim chance the loans will turn sour as they were extended upon the policyholders' insurance contracts, but it will continue to keep tabs on their progress. (Yonhap)