S. Korean insurers' loan default ratio rises

SEOUL, Jan. 20 (Yonhap) -- The loan delinquency ratio of South Korean insurers
increased as of the end of November as the slumping economy jacked up bad loans
by households and businesses, the financial watchdog said Tuesday.
The default ratio of local life and non-life insurers reached 3.72 percent as of
end-November, up from 3.61 percent at the end of September, according to the
Financial Supervisory Service.
The delinquency ratio for household loans extended by insurers came in at 3.31
percent as of the end of November, up from 3.19 percent at the end of September.
That of corporate loans rose 0.07 percentage point to 4.75 percent, the watchdog
added.
The data came as the South Korean economy is slowing more sharply than expected
amid faltering exports and weakening domestic demand. The amount of bad loans is
feared to rise amid the global economic downturn, while Korea's economic growth
is widely expected to dip into the 1-percent range this year on plunging exports.
The watchdog said it will keep a close tab on insurance companies' risk factors
as deteriorating economic conditions at home and abroad will likely raise the
loan default ratio.
sooyeon@yna.co.kr
(END)