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Photo courtesy of Yonhap News |
[Alpha Biz= Paul Lee] Seoul – Construction loan delinquencies at South Korea’s five major banks have surged sharply in the first half of 2024, reflecting the continued slump in the construction sector.
According to management disclosures released on September 6 by the nation’s top five banks—KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, and NH NongHyup Bank—delinquent construction loans reached KRW 230.2 billion as of the end of June 2024. The figure covers loans with principal or interest payments overdue for more than one month.
This represents more than a twofold increase compared to KRW 111.6 billion at the end of 2023, and an 80% surge compared to KRW 127.2 billion in the first half of last year.
Breakdown by Bank
KB Kookmin Bank: KRW 48.2 billion (up from KRW 22.2 billion at end-2023)
Shinhan Bank: KRW 33.4 billion (up from KRW 22.4 billion)
Hana Bank: KRW 30.3 billion (up from KRW 21.6 billion)
Woori Bank: KRW 33.3 billion (up from KRW 18.7 billion)
NH NongHyup Bank: KRW 85.0 billion (up from KRW 26.7 billion)
The data underscores mounting stress in the construction sector, which continues to face a prolonged downturn driven by weak housing demand and tightening credit conditions.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
