Insurer loans increase 7.8% in 2020

The Financial Supervisory Service logo in front of its headquarters in Yeouido, west of Seoul (Yonhap)

Loans from insurance companies in South Korea rose 7.8% year-on-year last year, due to the increase in loans secured by real estate and lending to businesses, said on Friday. the financial supervisory body.

Insurers’ outstanding loans stood at 253 trillion won ($ 224.4 billion) at the end of December, compared with 234.7 trillion won the year before, according to the Financial Monitoring Service (FSS). .

Their loans to households increased by 2 trillion won year-on-year to 123.1 trillion won last year, as the expansion of mortgage-backed loans increased amid rising house prices. Mortgage loans from insurers increased from 3.2 trillion won to 47.2 trillion won.

Business loans stood at 129.7 trillion won at the end of December, up 16.3 trillion won from the previous year.

The loan default rate, which measures the proportion of loan principal or interest unpaid for at least one month, stood at 0.17 percent in 2020, down 0.09 percentage points from the previous year. ‘last year.

The default rate on loans to households fell 0.2 percentage point to 0.38%, while that of business loans stood at 0.08%, down 0.03 percentage point.

The NPL ratio stood at 0.15%, unchanged from three months earlier, the FSS said. (Yonhap)

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