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Korean banks' bad debt ratio rises in Feb.

All Headlines 14:01 March 27, 2012

SEOUL, March 27 (Yonhap) -- The bad debt ratio for loans extended by local lenders rose in February as the economic slowdown and the slumping property markets spurred fresh loan delinquency, the financial watchdog said Tuesday.

Local banks' non-performing loans accounted for 1.13 percent out of their total lending as of end-February, up 0.06 percentage points from a month earlier, according to the Financial Supervisory Service (FSS).

The delinquency ratio for corporate loans stood at 1.38 percent last month, up 0.05 percentage points from the previous month, and the comparable figure for household loans was 0.85 percent last month, also up 0.07 percentage points, the watchdog said.

The data came as the government is battling growing household debt in Asia's fourth-largest economy.

As of September 2011, South Korea's total outstanding household debts, which include loans and credit purchases, stood at a record 892.5 trillion won (US$786 billion), spawning concerns about increasing household debt.

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