The delinquency rate and non-performing loan ratio of domestic insurance companies' corporate loans increased significantly in the first half of 2023. The overall loan delinquency rate was 1.08%, up 0.26 percentage points from the previous quarter, which is due to the increase in the corporate loan delinquency rate to 1.21% by 0.41 percentage points. In particular, the non-performing loan ratio for corporate loans reached 1.62%, the highest level in the past 10 years. This is analyzed as a result of economic recession and the deterioration of non-performing loans from real estate project financing (PF) loans. The Financial Supervisory Service plans to guide insurance companies to strengthen their loss absorption capacity and asset soundness management.
