SEOUL, July 15 (Xinhua) -- Delinquency ratio for household debts in South Korea rose slightly in May as delinquent credit loan increased in the month, financial watchdog data showed Monday.
The ratio of bank household loans, overdue at least one month, stood at 0.32 percent of the total as of the end of May, up 0.02 percentage points from a month earlier, according to the Financial Supervisory Service (FSS).
The delinquency ratio for mortgage loan was unchanged at 0.22 percent, but credit loan to households extended by banks advanced 0.05 percentage points to 0.55 percent in the month.
The financial watchdog said it will encourage banks to prepare sufficient loan loss reserves for possible defaults.
The delinquency ratio for bank corporate loans added 0.02 percentage points from a month earlier to 0.66 percent at the end of June.
The bad debt ratio for loan to big corporations declined 0.06 percentage points to 0.67 percent, but the figure for loan to small companies advanced 0.04 percentage points to 0.65 percent.
