South Korean insurer lending rose 7.8% in 2020

Outstanding loans totaled $224.4b as of end-December.

Loans extended by South Korean insurers rose 7.8% YoY in 2020, triggered by higher home-backed lending and corporate loans, reports Yonhap News Agency.

Outstanding loans totaled $224.4b (KRW253t) as of end-December, according to the Financial Supervisory Service (FSS). Loans to households rose to $109b (KRW123.1t) as the extension of home-backed lending increased amid rising housing prices.

Insurers' mortgage loans grew to $41.9b (KRW47.2t), with lending to companies reaching $115b (KRW129.7t).

The loan delinquency rate dropped 0.09pp to 0.17%. The delinquency rate for household loans declined to 0.38% whilst that for corporate lending came to 0.08%.

The ratio of nonperforming loans went unchanged at 0.15%.