Banks’ potential uncollected loans jump 49 pct in 2023 on high interest rates

The potential uncollected loans by four major financial holding firms jumped 49 percent on year in 2023, as high interest rates took a toll on borrowers, data showed Tuesday. The value of potential uncollected loans came to 1.96 trillion won (US$1.47 billion) in 2023, up 48.8 percent from the previous year, according to the data provided from the financial holding firms. The four firms are KB Financial, Shinhan Financial, Hana Financial and Woori Financial. The jump in potential uncollected loans is widely attributed to high interest rates, coupled with much slower-than-expected recovery in economic conditions. The average lending rate of banks in South Korea came to 5.19 percent last year, up from 4.29 percent in 2023 and 2.88 percent the year before, according to data from the Bank of Korea. Source: Yonhap News Agency