(MENAFN- Qatar News Agency) The delinquency ratio of loans extended by South Korean insurers inched up in August from a month earlier due mainly to growth in both corporate and household loans, the financial regulator said Tuesday.
The Financial Supervisory Service (FSS) said that the average bad debt ratio of local life and non-life insurers came to 0.75% at the end of August, up 0.03 percentage point from the previous month, according to South Korea's (Yonhap) News Agency
Compared with a year earlier, the figure dropped 0.1 percentage point from 0.85%, the FSS said
The rise in the overdue debt ratio came as insurance companies saw their loans extended to both companies and households increase over the cited period, the regulator said
The outstanding amount of corporate debts extended by local insurers stood at 43.1 trillion won about (US$40.6 billion) as of end-August, up 600 billion won from a month earlier, with that of household loans also rising 600 billion won to 80.8 trillion won in the same period
The FSS noted that large firms sought to take out more loans from insurers, contributing to the overall rise in corporate debts
The delinquency ratio of corporate loans gained 0.02 percentage point to 1.08% as of end-August, with the corresponding figure for property project financing debts still standing high at 5.91%.
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