The loan delinquency rate among South Korean insurance companies rose in the first quarter of this year as market rates increased on expectations of a Bank of Korea (BOK)'s policy rate hike, data from the financial regulatory authorities show.
Debts owed by households and companies to insurers amounted to KRW210.9 trillion ($195.8 billion) at end-March, up 1.5% from three months earlier, according to the Financial Supervisory Service.
Household loans rose by 0.7% to KRW117.3 trillion at the end of 1Q2018 while corporate loans grew by 2.5% to KRW92.9 trillion.
Delinquent loans, which are debts overdue by at least one month, stood at 0.52% of the total loan balance at end-March, up 0.01 percentage point from three months ago.
The central bank raised its benchmark interest rate last November to 1.5% from an all-time low of 1.25%, the first rate increase in almost six and a half years.