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Banks' loan delinquency rate for conglomerates at record high in Aug.

All News 09:15 October 07, 2016

SEOUL, Oct. 7 (Yonhap) -- The delinquency rate of South Korean banks' won-denominated loans to large firms hit an all-time high in August, as the nation's corporate restructuring drive gained pace, government data showed Friday.

The rate stood at 2.59 percent during the month, up 0.28 percentage point from a month earlier and 1.55 percentage points on-year, respectively, according to the Financial Supervisory Service (FSS).

It marks the highest since the related data were first complied in 2008.

The rise is mainly attributable to STX Offshore & Shipbuilding Co. which was placed under court receivership in May.

"It had the effect of pushing up around 1.4 percentage points in the delinquency rate of large companies," the FSS said.
Its affiliate STX Heavy Industries Co. also filed for court protection in July.

The August tally did not take into account overdue payments from Hanjin Shipping Co., South Korea's largest shipper that was put under court receivership in early September.

The delinquency rate of loans to small-and medium-sized firms also increased by 0.11 percentage point to 0.93 percent in August, while that of loans to households edged up 0.02 percentage point to 0.34 percent.

This undated file photo shows bank workers handling corporate financing. (Yonhap)


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