No. of credit delinquents rises nearly 200,000 this year

The number of credit delinquents has increased by nearly 200,000 this year. With the number expected to rise further due to the curbing of bank loans coupled with the global economic slowdown, a mass of credit delinquencies is feared next year.

According to financial industry sources and NICE Information Service Sunday, the number of credit delinquents with financial institutions increased from 919,570 in December last year to 1,098,878 in June this year, up 179,308 (19.5 percent) in half a year.

This means that the number of credit delinquents, which had fallen since the onset of the global financial crisis in late 2008, has reversed course. The number of credit delinquents, which reached 1,214,731 in late 2008, declined about 180,000 to 1,032,630 in late 2009 and fell by another 110,000 last year.

The rising number of delinquents has also resulted in a higher delinquency ratio. The delinquency ratios at certain commercial banks have exceeded levels set during the global financial crisis.

After the crisis, the delinquency ratio of household loans at Woori Bank hit an all-time high of 0.6 percent in late March 2009 before declining to 0.47 percent late last year. It soared this year to 0.77 percent as of late July, however.

Hana Bank also saw its delinquency ratio of credit loans rebound to the level set during the financial crisis. The delinquency ratio of its credit loans hit 0.88 percent as of late July, approaching 0.97 percent set in late June 2009, the highest level set after the global financial crisis.

Kookmin Bank also saw its delinquency ratio increase from last year’s second half. The delinquency ratio of household loans at the bank has never exceeded 1 percent after the crisis, but reached 0.96 percent in late June this year.

higgledy@donga.com